Vail CEO gives up salary; furloughs hourly employees, cuts salaries |

Vail CEO gives up salary; furloughs hourly employees, cuts salaries

SOUTH LAKE TAHOE, Calif. — Vail Resorts CEO Rob Katz is forced to make tough decisions because of COVID-19, including giving up his salary for the next six months.

Vail Resorts found, because of closing early, the company will experience at least $180 to 200 million in lost profits.

In an email to the company’s U.S. employees, he laid out the decisions he’s made.

“I have made decisions over the last few weeks that I never could have anticipated in my nearly 30 years working in the ski business,” Katz said in the email to employees. “I recognize the impact of today’s decisions on you, and I do not take them lightly.”

In addition to giving up his salary, Katz announced the company will be furloughing nearly all of the year-round hourly employees as of April 4 for the next one to two months. They will not receive pay but will continue receiving health benefits.

They are implementing a six-month salary reduction for all salaried employees, including senior executives, eliminating cash compensation for the Board of Directors, suspending 401(k) matches, eliminating the June and Sept. dividends to shareholders and reducing capital expenditures.

Katz said he knows this is disappointing news for the employees but said, “I am very hopeful that both the economy and travel will return to normal by the time our North American winter season opens eight months from now.”

He also urged the employees to practice health, safety and well-being.

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