Quiksilver will take an additional charge of $150 million for the current first fiscal quarter to reflect the final terms of its sale of Rossignol. With a slow start in its own stores through mid-December, the group is also facing the prospect of an operating loss of $12-13 million for the current first quarter.
In view of the ongoing financial problems, the top executives of Quiksilver have accepted to cut their base salaries by 5 percent as of next Feb. 1, in addition to pay cuts already enacted last Feb. 1. The group’s chief executive, Bob McKnight, sees his annual base salary reduced by 16 percent to $903,000. That of Charles Exon, chief administrative officer, goes down by 10 percent to $404,000.
Quiksilver Europe’s president, Pierre Agnès, and the group’s chief financial officer, Joe Scirocco, will both make 8 percent less. Agnès will earn $404,000 for the year.