Sodexo Launches €30 Million Employee Relief Program, Funded By Senior Executives

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• Sodexo Launches €30 Million Employee Relief Program, Funded By Senior Executives

02 April 2020

Food services and FM company Sodexo is establishing a €30 million relief fund, funded by the company and senior executives.

The official company press release says:

“Despite all our efforts, we know that this once-in-a-lifetime crisis currently confronting us will regrettably result in a reduction in our workforce and for this reason we have decided to establish a global Sodexo Employee Relief Program to help on-site staff impacted by this.”

The global program will be administered locally according to the specific needs of each country and support provided will depend on various factors, including the existence of government social protection schemes.

“We want to support our employees through these extraordinary times and we are clear in our commitment to this. The new Sodexo Employee Relief Program will be used to do just that – support those who are most affected by the COVID-19 crisis. It is the right thing to do.”

–Sean Haley

Regional Chair, Sodexo UK & Ireland 

This €30 million program will be funded by senior executives and the company as follows:

• Sodexo Chairwoman of the Board of Directors Sophie Bellon will waive 50% of her remuneration over the coming six months (The Chairwoman does not receive any annual variable compensation)
• Group CEO Denis Machuel will waive 50% of his fixed remuneration over the next six months as well as his variable remuneration for Fiscal 2020
• Group Executive Committee members will give up 10% of their fixed remuneration over the coming six months as well as their annual variable remuneration
• The 200 senior executives from all segments and operations around the world will also waive their annual variable remuneration

Initial COVID-19 response

Since the initial COVID-19 outbreak in China in December 2019, Sodexo began mobilising its resources to ensure its consumers stay safe and healthy and that its business continues to operate for its clients.

The company has reacted in the following ways:

• The 95,000 Sodexo employees working in hospitals, senior residences and in areas of public administration under strain, are fully mobilised and have been supported by additional team members from sites with lower activity
• In China, with strongly reinforced health measures, Sodexo staff were on the front line to support healthcare professionals and patients in the hospitals of Wuhan.
• Whenever possible, Sodexo has reassigned their people whose workplaces have closed to other sites urgently requiring additional team members
• To date, almost 4,000 employees, primarily in North America and in Europe, have been reassigned to hospitals and retirement homes, which urgently required additional staff
• Sodexo is working proactively with other business sectors like retailers, e-commerce and manufacturing firms to find jobs for our employees hit by the COVID-19 economic fallout, who cannot be placed with other clients

Mindful of the difficulties encountered by its suppliers, Sodexo has also adopted support measures, including amending payment deadlines, logistics chain support, and adaptation of orders (volumes, consumption dates, etc). They have also implemented agile financing solutions, in particular for SMEs and local suppliers.

Sodexo Chairwoman of the Board of Directors, Sophie Bellon said:

“Our teams are our most precious asset. In adversity, they demonstrate the strength of our values ​​and their professionalism without fail. I want to highlight my support and express my gratitude to them during these particularly difficult times.”

Picture: Food services and FM company Sodexo is establishing a €30 million relief fund, funded by the company and senior executives.

Article written by Ella Tansley | Published 02 April 2020

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