Mattioli Woods CEO Ian Mattioli has chosen to forego his basic salary until 30 June to help mitigate costs and protect the firm's financial position amid the coronavirus crisis.
In addition to the CEO's salary cut, Mattioli Woods board members have agreed to reduce their basic salary or fees by 50% also until 30 June. The situation will then be reviewed.
The firm is reviewing its operating costs, restricting travel and reducing discretionary spending. It is also likely that no bonuses will be paid to staff in respect of the current financial year, the CEO said.
I hope all of our clients, staff, suppliers and shareholders come out of this crisis in the best possible shape"
Mattioli Woods' £25m acquisition of advice firm Hurley Partners, however, which is still subject to regulatory approval, is expected to complete in the second quarter of 2020.
This morning's market update said the group's financial performance in the first nine months of the current financial year was in line with the board's expectations.
However, the firm expects disruption to trading in the coming months and an associated reduction in the group's income streams linked to the value of clients' funds under management and advice and banking revenue.
Following the Bank of England's cut in the base rate to a historic low of 0.1%, the update said the firm's banking revenue is expected to be negligible going forward, compared to £400,000 for the nine months ended 29 February 2020.
Mattioli said: "In light of the uncertain trading conditions we are implementing mitigating actions to contain costs and protect our financial position.
"We are passionate about looking after our clients' financial affairs and I hope all of our clients, staff, suppliers and shareholders come out of this crisis in the best possible shape."
This article first appeared on our sister title Professional Adviser.