Christopher & Banks CEO Takes 50 Percent Pay Cut
Keri Jones, CEO of Plymouth-based women’s apparel retailer Christopher & Banks Corp., will have her base salary cut by 50 percent as the company deals with fallout from Covid-19. Jones agreed to the pay cut “in light of the extraordinary hardships imposed on the company’s business by the Covid-19 pandemic.”
Jones’ base salary is $700,000. That will be cut to $350,000 effective April 5. The reduced base salary remains in force until reinstated “in full or in part” by the board of directors.
The company also announced a series of other measures:
- Cutting other executive officers’ base salary pay by 20 percent;
- Extending temporary store closures until they can reopen;
- Furloughing all in-store workers and more than 60 percent of other employees;
- Suspending approximately $3 million in planned capital expenditures; and
- A “significant reduction” in operating expenses
For the company’s fiscal 2018, Jones’ total compensation was $1.9 million including a bonus, as well as stock and option awards.
In fiscal 2017, the company reported revenue of $365.9 million and a net loss of $22 million.
Christopher & Banks was delisted from the New York Stock Exchange in April 2019 for failing to meet the minimum market capitalization of $15 million. The company’s stock is now traded over-the-counter, but it is no longer required to disclose financial information.
Jones joined Christopher & Banks as president and CEO in March 2018. Her extensive retail industry experience includes 27 years at Minneapolis-based Target Corp. She also sits on the company’s board of directors.
As of March 19 the company operated a total of 445 stores in 44 states. The portfolio includes 309 MPW stores, 77 outlet stores, 31 Christopher & Banks stores, and 28 CJ Banks stores.
Jones joins a growing list of top executives taking a pay cut or forgoing their salaries entirely. On Tuesday, Polaris Industries Inc. CEO Scott Wine said he’d forgo his salary through the end of the year.