$SABR investors react positively to cost cutting

Sabre Corporation SABR announces pay cuts, as well as suspended dividend and share repurchases in an effort to preserve cash and maintain ample liquidity amid a possible financial crisis due to the coronavirus outbreak. Per the company, the preemptive measures would help it save more than $200 million in costs.

On Mar 20, the travel software company said that it would cut 25% of salary of its U.S. employees as well as CEO Sean Menke. The company noted that the pay cut is a temporary measure undertaken to combat the crippling impact of coronavirus on its finances.

Furthermore, Sabre has decided to temporarily suspend its 401(K) program for U.S. employees. Also, the company will reduce the cash retainer for its board members. Globally, the company is working out salary plans on a country-by-country basis.

Sabre Suspends Dividend and Share-Buyback Plans

Sabre has suspended its quarterly dividend and share-repurchase program to shore up the company’s balance sheet as it braces for a period of revenue slump amid the virus mayhem. On Mar 16, the company’s board voted to defer all its dividend payments occurring after Mar 30. This Zacks Rank #3 (Hold) travel software company has not specified the tenure of suspension.
source zacks