Please ensure Javascript is enabled for purposes of website accessibility

TJ Maxx Parent Plans Worker Furloughs, Executive Pay Cuts

By Rhian Hunt – Apr 7, 2020 at 3:33PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The retailer has no current timetable for reopening.

The TJX Companies (TJX 1.27%), parent company of off-price retailer brands like T.J. Maxx, Marshalls, Sierra, HomeGoods, and others, announced in an SEC report that it plans to furlough many of its workers starting this Saturday, April 11. Many of its executives will also take temporary pay cuts of 20% to 30%. 

The company is taking these measures in response to the ongoing COVID-19 pandemic and its associated shutdown of work and retail across the United States. Its share value sank by 20% in March following the closure of its stores.

Clothing hanging in a retail store.

Image source: Getty Images.

Originally, TJX planned a two-week shutdown, and continued paying its associates after sending them home from the closed outlets. However, with the outbreak still in progress and at least several more weeks of quarantines and similar measures ahead, TJX made the decision to temporarily furlough "the majority of store and distribution center Associates in the U.S." without pay. These individuals will continue to get other benefits, presumably including health plan coverage, until work resumes.

TJX has no set schedule for store re-openings, given the many unknowns confronting it and other retailers during the pandemic. It says that it is ready to do so at the earliest safe date, and reopening dates will probably vary by state, depending on local conditions and the rules laid out by the authorities there.

Two of the retailer's top executives, CEO Ernie Herrman and Executive Chairman Carol Meyrowitz, are taking a 30% reduction to their base salaries. Other executives are taking a 20% cut to base pay, while the cash retainer fees of the Board of Directors will be reduced by an unspecified amount.

Rhian Hunt has no position in any of the stocks mentioned. The Motley Fool recommends The TJX Companies. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The TJX Companies, Inc. Stock Quote
The TJX Companies, Inc.
TJX
$62.12 (1.27%) $0.78

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
326%
 
S&P 500 Returns
102%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.