Raytheon Technologies’ board of directors is taking a voluntary pay cut as the United States continues to be impacted by COVID-19.
The board has reduced non-employee director compensation by an amount equal to 20% of the director cash retainer. The pay cut will apply for the annual term ending at the 2021 Annual Meeting of Shareowners.
The defense giant, which is headquartered in Waltham, Massachusetts, announced the board’s gesture on May 14.
News of the resolution follows a decision by CEO Greg Hayes to institute a temporary 10% base pay reduction for all salaried employees across the company’s Pratt & Whitney and Collins Aerospace Systems businesses as well as its corporate offices.
Raytheon employs 195,000 people across four industry-leading businesses―Collins Aerospace Systems, Pratt & Whitney, Raytheon Intelligence & Space, and Raytheon Missiles & Defense.
Temporary reductions in pay announced by Raytheon last month will go into effect from June and remain in place until the end of the year.
Previously, CEO Greg Hayes and executive chairman Tom Kennedy had volunteered to slash their salaries by 20% for the same period.
In a statement released May 14, Raytheon said: “Raytheon Technologies continues to monitor the crisis and is responding as needed to ensure the wellbeing of its employees, customers and suppliers, while protecting the long-term financial strength of the business.”
Raytheon Technologies Corporation was formed in 2020 through the combination of Raytheon Company and the United Technologies Corporation aerospace businesses.
This week, the company confirmed that it is closing an office in Albuquerque, New Mexico, where 200 people are currently employed.
Raytheon spokeswoman Heather Uberuaga said the company is seeking to streamline its capabilities and relocate support for key capabilities and customer programs to alternative facilities elsewhere in the United States.
“We think this move is in the best interest of our customers as we look to further integrate and streamline our capabilities with pursuits and programs located at other sites while working with employees on a case-by-case basis to explore their individual employment options going forward,” Uberuaga wrote in an email to the Albuquerque Journal.