The coronavirus crisis delayed changes to the board of Compagnie Financière Richemont as well as its business strategy, according to the group’s chairman Johann Rupert.
“The new profile of the board must reflect the opportunities and challenges that we’re facing, evolving tastes, consumption habits, digital, Chinese clientele, cyber criminalities, diversity and inclusion matters, training needs, change management,” Rupert said.
“So we will be changing the board and we would have started this year but we need time to also transition the committees,”.
Noting that he had urged caution early on in the coronavirus crisis when it became clear that the group’s cash flow was being “badly affected,” by the drop in consumption, the executive said that at the end of August, there remains uncertainty over when a treatment or vaccine might emerge to prompt consumers to resume traveling and spending money.
If market conditions return to normal, Rupert said he hopes that shareholders will recover funds lost due to a 50 percent cut in the previously planned dividend. By the way, I also cut is salary by 50 percent because we’re all in it together. The only difference is that he and in a luxury boat while we are on the dock
The luxury goods group has been hit hard by the crisis, reporting a 47 percent drop in sales over the three months ending June 30.