Marriott CEO Arne Sorenson has announced he will not take a salary for the rest of the year, as a result of the economic fallout from COVID-19. Additionally, the Marriott executive team will be taking a 50% pay cut.
Steven Carvell, professor of finance in the Cornell SC Johnson College of Business, is an expert in corporate finance; financial strategy and investments; and mergers and acquisitions. He is available for interviews about the financial impact of the new coronavirus on the hotel industry.
“This announcement from Marriott, the first of its kind among all large travel and tourism companies, is an example of shared impact. We hear many companies talk about balancing stakeholder interests. As employees, owners and vendors across Marriott’s vast global system will feel the impact of COVID-19, they are acknowledging it and recognizing the importance of sharing in it tangibly. While not a solution, it is a new best practice that other companies will need to consider if the industry wants to help clear the way for support from the federal government.”