CAA will be instituting pay cuts companywide up to 50%, on a progressive scale amid the shutdown caused by the coronavirus pandemic, TheWrap has confirmed. CAA Chiefs Richard Lovett, Bryan Lourd and Kevin Huvane will take no salary for the rest of the year. The agency has not laid off any employees and hopes the pay cuts will prevent that measure.
“In this time of tremendous uncertainty for individuals, businesses, governments and communities, it is incumbent upon us to look closely at what measures help ensure CAA always remains the strongest company for our employees and clients. Making cost reduction decisions is always a thoughtful and deliberate process for us, never more so than under these extraordinary circumstances,” said CAA in a statement via a spokesperson to TheWrap. “We are implementing, among other actions, a reduction in pay among employees across all levels of the agency, with our highest compensated colleagues shouldering a greater responsibility. We deeply appreciate not only the understanding that employees across the company have demonstrated since this unprecedented global crisis began, but also the remarkable support and compassion colleagues have shown one another, clients, and many in the community in need.”
CAA is not the only agency dealing with the coronavirus shutdown. Endeavor chiefs Ari Emanuel and Patrick Whitesell announced about 250 temporary layoffs that will impact staffers in operational positions who can’t perform their jobs from home, TheWrap has confirmed. APA implemented salary cuts and furloughs with the APA board of directors making the largest financial sacrifice. Anyone making below $100,000 annual salary will not be affected. Other cost-cutting measures, such as suspensions and furloughs, are being taken in the hopes of avoiding layoffs as a result of the industry’s near shutdown and dramatically slowed economy due to the virus. Temporary layoffs that were announced at the Paradigm Talent Agency have hit senior agents within the movie, TV literature and music departments of the organization, an individual with knowledge told TheWrap. Additionally, United Talent Agency on issued company-wide salary cuts in the wake of the coronavirus pandemic, a UTA spokesperson confirmed to TheWrap.
Deadline first reported the news.