Mattioli Woods chief Ian Mattioli has decided to give up his salary completely until this June to protect the company’s financial position during the crisis triggered by the coronavirus (Covid-19) pandemic.
Besides, the company’s board members agreed to reduce their basic salaries by half for the next three months.
The firm will review the situation after this period.
The company further confirmed that it will likely scrap bonuses for staff in the current financial year.
The money will instead go to address the pandemic’s impact.
The wealth manager is also reviewing its operating expenses.
At the same time, it is curbing discretionary spending as well as restricting travel.
The wealth manager predicts an inevitable hit to trading over the coming months that could adversely affect its income streams associated with the value of client funds under management and advice.
The impact of the crisis on the firm is said to be less severe as most of its revenues are fee-based instead of being linked to clients’ assets.
However, the firm said that it is too early to forecast the full impact of the crisis.
Ian Mattioli said: “Our profit outlook for the year ending 31 May 2020 remains in line with management’s expectations. The acquisition of Hurley Partners is subject to regulatory approval and is expected to complete in the second quarter of 2020.
“The Group enjoys a strong balance sheet and following completion of the acquisition will continue to have significant cash balances and headroom on its regulatory capital requirements.
“The Board is pleased to confirm the previously announced interim dividend of 7.3p per share will be paid to shareholders today and the Board will consider how the global crisis evolves in formulating its recommendation for any final dividend.”