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Hilton Cuts Paychecks, Suspends Dividends, Share Buybacks Due To Covid-19

Hilton Worldwide Holdings Inc. (HLT) announced pay cuts among executives and said it is suspending all share buybacks and the payment of dividends, other than those previously declared amid the challenges due to the spread of novel coronavirus or COVID-19.

Hilton noted that operations have been suspended across many managed and franchised hotels, and those hotels that remain open have reduced services for guests because of decreased occupancy levels.

The company announced various actions at the corporate level until the crisis passes and travel resumes.

President and CEO, Christopher Nassetta, will forgo his salary for the remainder of 2020, and the Executive Committee will take a pay cut of 50 percent for the duration of the crisis.

Beginning April 4, many of Hilton's corporate Team Members will have reduced schedules or be furloughed for up to 90 days.

Further, Corporate Team Members who are not furloughed will have their pay reduced by up to 20 percent for the duration of the crisis.

Through the Hilton Workforce Resource Center, Team Members are being given direct and, in some cases, expedited access to more than 500,000 temporary jobs at more than 30 leading companies including Amazon, CVS, Albertsons, and Walgreens.

Hilton hopes to expand this program globally and welcome Team Members back when travel resumes.

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