In a U.S. Securities and Exchange Commission filing, the producer cited “current business conditions” and a desire to “align on a personal level with the company’s ongoing cost reduction strategies” for its move to take slices from the salaries of Chairman and Chief Executive Officer Gregory Boyce as well as Glenn Kellow, president and chief executive officer-elect.
Both men requested the cuts.
Specifically, Boyce’s regular base salary of just under $1.23 million annually will be reduced to $1.1 million annually from May 1 through June 30, then again from $900,000 to $810,000 between July 1 and the end of 2015.
Kellow, meanwhile, will see his base salary drop from $950,000 to $855,000 from May 1 until the end of the year. Kellow, who was named to the CEO-elect seat earlier this year, is still prepared to take over the position on May 4; Boyce will remain with Peabody as executive chairman of the board.
Both Boyce and Kellow will revert to their regular annual salaries beginning in 2016.
William Coley, Peabody’s chairman of the compensation committee for its board, thanked the executives for their decisions and for their ‘display of leadership and recognition of the company’s situation in these challenging times.”