Suffering from declining destination visits and lift-ticket revenue, Vail (Colo.) Resorts announced earlier this month that it plans to reduce wages for employees across the company.
The pay cuts, according to the Denver Business Journal, will take effect at or near the end of the current winter season. The reductions will be implemented on a sliding scale, from 2.5 percent for seasonal employees to 10 percent for executives. They will be offset partially by a granting of stock-based incentive compensation for all full-time employees, ranging from 1.5 percent to 7.5 percent of salaries.
Resort-related earnings fell 8.3 percent from last year—a $9.6 million decline—as out-of-state and overnight visitors were less likely to come to the company’s five mountain resort properties, and to spend less money when they did show up.
“Our second-quarter resort segment results, which encompass the first part of the ski season, reflect the impact of the severe downturn in the economy,” Vail Resorts CEO Rob Katz said in a statement.
Katz, who announced he will receive no salary for one year and then take a 15 percent pay cut, added that the February-through-April period, which is when Vail Resorts typically gets its most business, could show bigger revenue declines.
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