PARIS — Citing disruption from the coronavirus crisis, Carrefour said it will cut its dividend by half and shrink its board.
The move comes as companies across industries scramble to shore up their cash positions, cut costs and streamline decision-making to weather the economic disruption from the spread of the virus, which is expected to push the world economy into the deepest downturn since the Great Depression.
Carrefour will not replace departing board members Lan Yan and Jean-Laurent Bonnafé, as well as Thierry Breton, who resigned in October, bringing the number of directors to 14, not including directors that represent employees.
Philippe Houzé will be appointed vice chairman of the board and independent director Stéphane Israël will be lead director. Shareholders taking part in the webcast annual meeting on May 29 will also be asked to renew terms for Alexandre Arnault and Marie-Laure Sauty de Chalon.
Shareholders will also vote on the dividend, now set at 23 euro cents a share, 50 percent lower than the previous amount announced in late February.
Eyewear giant EssilorLuxottica took a similar move earlier Monday and said it would take a dividend proposal off of its upcoming annual meeting and revisit the matter in the second half of the year.