30 percent paycut for McGrath Agency salaried staff for three months

McGrath salaried staff have been asked to take a 30 percent pay cut for the next three months.

The request comes as its CEO Geoff Lucas and board have taken a 40 percent cut.

Estate agents are not salaried staff, rather contractors.

Lucas told his team this morning that over the last seven days, McGrath achieved an auction clearance rate of 31 percent, as many clients transferred scheduled auctions to private treaty.

"Notwithstanding this, our teams this week sold 190 homes valued at over $185 million," he advised.

"This is a remarkable performance given the uncertainty engulfing the world at the moment," he noted.

Its property management teams have been "enormously active" in serving more than 32,000 landlords and 45,000 tenants.

McGrath Limited formally provided its shareholders with an update in relation to the company’s response to the COVID-19 pandemic 

To mitigate the potential financial impact of COVID-19 on the business, and to ensure the company emerges from this crisis with the greatest strength, the Board and Management have implemented a range of cost saving measures, including:

• Temporary closure of certain company offices to reduce operating expenses. Agents have been redeployed to neighbouring offices, however noting our teams are respecting remote working conditions as required.

• Immediate cessation of all discretionary expenditure and non-essential spend.

• Minimisation of capital expenditure.

• Hiring freeze.

• 40% reduction in remuneration of the CEO and the Board of Directors for May, June and July 2020.

• 30% reduction in all salaries above $70,000 p.a. for those staff employed by McGrath Limited for May, June and July 2020.