Anna Wintour is set to take a 20 percent pay cut after Conde Nast announced it is reducing salaries for staff earning over $100,000 by 10 to 20 percent in response to expected losses brought on by the coronavirus outbreak.
Wintour, 70, an editor-in-chief at VOGUE and artistic director at the global publishing company, takes the 20 percent financial hit as CEO Roger Lynch halved his basic wage in order to cover for a decrease in advertising income amid the pandemic.
‘This action will start at the top. I will take a 50% reduction of my base salary, as will the external members of our board,’ Deadline reports Lynch wrote. ‘The rest of the ELT will reduce their base salaries by 20%. For those who make $100K or above, reductions will range from 10-20% of base salary, depending on compensation level.’
Wintour has been editor of VOGUE since 1988. In 2011, New York magazine reported Wintour was paid $2million annually for role as editor-in-chief since 2005. Since then she has become an artistic director at Conde Nast and is believed to earn much more.
Anna Wintour is set to take a 20 percent pay cut in response to the coronavirus pandemic. The VOGUE editor-in-chief is pictured wearing sweatpants and working in isolation
Conde Nast CEO Roger Lynch announced the company is reducing salaries for staff earning over $100,000 by 10 to 20 percent. Lynch will be taking a 50 percent pay cut
Lynch announced the news in a memo to staff, some of whom will be furloughed and others who were told the temporary income reduction would last for five months starting in May.
Half the company – which has offices in the UK, Europe and Asia – earns under $100,000 the New York Times reports.
Aside from Lynch’s salary reduction, executive leadership teams had the most drastic pay reductions.
Lynch explained that the company-wide decision was in anticipation of less money coming in due to the businesses directly affected by strict stay-at-home measures.
The pay decreases would limit the impact to lower wage earners and allow them to continue providing benefits, Lynch said.
Travel and tourism is one of the worst affected sectors amid the pandemic due to travel bans. High-end brands may also see a decline in sales due to customers being furloughed. With such brands being advertising clients of publications like VOGUE, the loss in revenue is expected to have a knock-on effect.
‘It’s very likely our advertising clients, consumers, and therefore our company, will be operating under significant financial pressure for some time,’ Lynch said. The May issue of VOGUE is pictured with Gal Gadot as the cover star
‘It’s very likely our advertising clients, consumers, and therefore our company, will be operating under significant financial pressure for some time,’ Lynch said in the company statement. ‘As a result, we’ll need to go beyond the initial cost-savings measures we put in place to protect our business for the long term.
‘While we consider it a last option, we do expect there will be some role eliminations as part of these efforts.’
Lynch said the company had already closed several hundred open positions and limited hiring only to the most critical roles.
Other Conde Nast publications Wired and Vanity Fair earned money by operating with a digital paywall. Meanwhile VOGUE still relies heavily on advertising funds, as does Glamour – which recently moved to a digital-only platform.
One advertiser, LVMH – which has Louis Vuitton under its umbrella and who boss recently appeared in Forbes’ Top 10 Richest Billionaires List – has laid off employees.
In response to the outbreak, publishing companies Bustle Digital Group, Vice Media, Group Nine, Gannett and Maven Media have also introduced cost-saving measures that directly affect employees.
‘We aren’t alone in needing to take actions like this,’ Lynch said in the memo. ‘Companies around the world are all facing similar challenges and responding accordingly. But that doesn’t make this process any easier.’
The VOGUE cover price is $6.99 and is cheaper with a subscription.
Conde Nast operates globally and announced in the memo that it is taking advantage of schemes set up by governments around the world, to make sure employees are better off.
Whereas in the US the relief plan only gives Americans a one-time handout of $1,200, in the UK (Conde Nast has a London HQ) the government will pay 80 percent of salaries for those who have lost out.
Anna Wintour has had to swap the runway shows for a more low-key appearance since the coronavirus outbreak. Left she wears Chanel in November 2019. Right, she wears a face mask amid the pandemic
‘We will also work to implement reduced working hours and work week schedules (e.g. three to four-day work weeks) for certain roles, in particular where government programs and stimulus packages can help supplement employees’ earnings,’ Lynch said. ‘These decisions will be made locally in markets in accordance with available government programs.’
On Monday, fashion icon Wintour was pictured on VOGUE’s Instagram account uncharacteristically wearing sweatpants as she worked from home and social media users appears shocked as she made an exception to her very strict style rules as she wore a red sweater.
‘I never imagined I would see Anna Wintour wearing sweatpants,’ one person commented on the image, while another incredulous commenter added: ‘ARE THOSE SWEATPANTS?!!!!’
While wearing sweatpants might not ordinarily seem like a subject that would cause so much interest online, Wintour’s ensemble appears to represent something of a U-turn as far as her own personal style rules are concerned.
Just last year, the magazine editrix was asked whether or not she ever wears sweatpants, to which she responded, ‘No’.
The style move was also surprising because Wintour is renowned for wearing the same fashion formula day in day out, no matter what the weather or the occasion.
Since 1994, Wintour has worn the same style of nude Manolo Blahnik pumps, which were designed especially for her by the footwear legend.
Although she will occasionally switch these out for a more sensible boot during the colder months, the rest of her ensemble remains the same: a floral-print dress, a stack of colorful gem collar necklaces, and her signature sunglasses.
However, spending days quarantined at her home appears to have pushed Wintour towards a more comfortable collection of clothing – although she has not ever been without her sunglasses, even while self-isolating at home.
However, spending days quarantined at her home appears to have pushed Wintour towards a more comfortable collection of clothing – although she has not ever been without her sunglasses, even while self-isolating at home
Just last week, Wintour penned an essay about the things she is most grateful for during lockdown – while also pleading with members of the public to wear masks whenever they leave their homes
Despite the frenzy of excitement about Wintour’s outfit however, the fashion icon was actually trying to make a more important point with the post, which hinted at a need to embrace sustainable fashion going forward in a bid to take better care of the environment.
It read: ‘We need to talk frankly and openly about what fashion is going through, but just as importantly, we need to start imagining what comes next.
‘Please join us. Anna Wintour shares how #VogueGlobalConversations, a four-day event on Zoom that starts tomorrow, came to be, as well as what she’s most looking forward to about it.’
The new image of Wintour is the latest in a series of candid photos of the Vogue Editor-in-Chief, who has regularly been writing personal pieces for the magazine’s website since its staff began working from home last month.
Just last week, Wintour penned an essay about the things she is most grateful for during lockdown – while also pleading with members of the public to wear masks whenever they leave their homes.
She also revealed that her doctor son, Charlie Shaffer, had contracted coronavirus while working with patients in New York City, explaining in a video for Vogue’s Instagram that the 35-year-old father-of-two was ‘quite ill’ and currently quarantining at home.
CONDE NAST CEO ROGER LYNCH ANNOUNCES PAY CUTS
To our Condé Nast team,
For those of you who celebrated the recent Passover or Easter holidays, and for those who may still be out today, I hope you’ve had the opportunity to spend time with your families and loved ones – whether virtually, or in person. While we’re working from home, we still need to take time to recharge.
As I’ve shared in my recent emails, we’ve been working to assess the impact of the COVID-19 crisis on our business and to reset our financial plan for the year. That work has involved modeling several different scenarios. While we aren’t as solely dependent on print and digital display advertising as some of our competitors, globally, we will still see a substantial impact from this crisis on our business. The ELT and I recognize it’s very likely our advertising clients, consumers, and therefore our company, will be operating under significant financial pressure for some time. As a result, we’ll need to go beyond the initial cost savings measures we put in place to protect our business for the long term.
Today, I’m outlining some additional actions we’re taking to balance the needs of our people and our company, as our people are the most important part of our company. I recognize these are extremely challenging times both personally and professionally, and that any amount of added uncertainty is stressful. As a leadership team, we’ve continued to work to do everything possible to protect jobs, limit impact to lower wage earners, and continue to provide benefits to individuals and their families through this time. Here’s an overview of what you can expect at the global level:
Temporary salary reductions: To start, we’re implementing temporary salary reductions for all those who earn a base salary of at least $100K USD (or equivalent). This action will start at the top. I will take a 50% reduction of my base salary, as will the external members of our board. The rest of the ELT will reduce their base salaries by 20%. For those who make $100K or above, reductions will range from 10-20% of base salary, depending on compensation level. These changes will go into effect on May 1 and will last for a period of five months, through the end of September. Our People/HR teams globally will work to implement these adjustments according to local employment laws and regulations, updating agreements and working with union representatives as needed.
Furloughs and reduced working schedules: We will also work to implement reduced working hours and work week schedules (e.g. three to four-day work weeks) for certain roles, in particular where government programs and stimulus packages can help supplement employees’ earnings. These decisions will be made locally in markets in accordance with available government programs. Along with the salary reductions noted above, these are actions that will help us preserve jobs and benefits.
Potential job and role eliminations: Many of you have been asking whether there will be any job eliminations. While we consider it a last option, we do expect there will be some role eliminations as part of these efforts. We’ve already closed several hundred open positions and limited hiring only to the most critical roles. Role eliminations are never something we take lightly, and we’ll continue to work to limit this as much as possible.
Project deferrals: Beyond the employment measures outlined above, we’re also deferring several projects to reduce workloads on teams, and to focus us on immediate priorities. Some examples of global projects that have been deferred or reprioritized for now include: our further Workday implementation for Finance and HR; the on-boarding of additional markets onto Copilot this year; the further outfitting of global internal events spaces; and, the global employee intranet – all of which will be deferred to 2021.
Local leaders will follow up in the coming days and weeks to communicate specific actions in your markets and teams. We want to act swiftly and thoughtfully, so this process isn’t dragged out. While we’ll always have the need to make adjustments to our organizational structure and team to optimize our business, we expect to complete communications related to these actions by the end of May.
We aren’t alone in needing to take actions like this – companies around the world are all facing similar challenges and responding accordingly. But that doesn’t make this process any easier. I understand the impact this will have on many of our team members, and I appreciate all of you who will join me in taking temporary salary reductions, so we can limit that impact as much as possible.
Over the past few months, I’ve said repeatedly how proud I am of this team. That is even more true today, as we embark together on these actions in an effort to protect our business for the long term. Our efforts to diversify our business model and grow consumer revenue are helping us weather this challenging time, and we must continue to focus and adapt our business in that direction. I know you will have questions about today’s announcements. The ELT and I are standing by ready to answer them. We may not have all the answers today, but we’ll do our best to provide as much information and clarity as possible.
Thank you for your support during this critical time for our business. I wish you and your loved ones good health, and look forward to the day when we can meet again in person.
Roger
WHAT WILL I GET AND HOW WILL I GET IT? YOUR GUIDE TO THE BAILOUT CASH
The stimulus bailout of up to $1,200 per person will go to everyone with income below $99,000 a year last year, or $198,000 for a married couple, and to some single parents earning up to $136,500. Parents who are eligible will get $500 for each of their children.
The source of your income is irrelevant, meaning social security recipients are eligible too.
How do I work out whether I am eligible?
First you need to find whether your adjusted gross income (AGI) was under the $99,000 adjusted gross income limit, or the $198,000 if you file as a married couple.
That is not the amount on your paycheck but your total income minus some permitted tax deductions including student loan interest payments – and your AGI can be found on your 2018 or 2019 tax return.
You also have to be a citizen or permanent resident, meaning workers on visas and undocumented – or illegal – aliens will not get cash despite having paid taxes.
How much will I get if I am a single filer?
If your adjusted gross income was under $75,000, you will get $1,200.
For every $100 of adjusted gross income over $75,000 you will lose $5 from the check or deposit. So if your AGI was $85,000, you will get a check of $700.
I’m a single parent – how am I affected?
If you file as head of household as many single parents do, the AGI limits are higher. You will get a $1,200 check if your AGI is under $112,500 and the upper limit for a payment is $136,500. All eligible parents receive $500 extra checks per child under 17.
What about married couples?
The limits for married couples to get payments is simply double that for single filers. So if your joint AGI is under $150,000 you get a full payment of $2,400. Payments taper down and no couple with an AGI above $198,000 get a payment. Parents get $500 per child.
How will I get paid – and when?
That depends on how you – or your tax filer – filed your tax return in 2019 or 2018. If you gave your bank account details for your refund to be directly deposited, your payment will come directly and could come as early as Wednesday.
The same applies if you receive Social Security retirement or Social Security Disability Insurance benefits – your payment will go direct into your bank account. That also applies to people who receive payments from the Railroad Retirement and Survivor Benefits scheme.
But if you opted for a check from the IRS, you will get your bailout payment by check. It will take the IRS 20 weeks to print the full number of checks it is anticipating sending out.
The IRS says it is planning to produce a website tool to enter your bank information to cut the number of people who need checks – but that has still to go into action
I didn’t file a tax return and I’m not on Social Security. Will I miss out?
People with incomes below $12,200 – $24,400 for couples – do not have to file federal tax returns but they are eligible. However you need to sign up at the IRS website’s special section to get the payment.
What if I don’t have a bank?
The government has still to specify any help for people without banks to cash their checks without paying fees but there have been calls for it to ask big banks to do so.
I earned more than the limit in 2019 and 2018 but now I’ve lost my job. Will I get a payment?
No. The checks are based on what people earned in the last tax return which is on file. So many people who lost jobs paying above the limit will get no help from the scheme. It is possible that the IRS comes up with a way to issue payments to such people in the future.
