CAA Cuts Pay Amid Pandemic, Agency Heads to Forgo Salary

Richard Lovett, Bryan Lourd and Kevin Huvane - Getty - Split - H 2020
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CAA's Richard Lovett, Bryan Lourd and Kevin Huvane

Richard Lovett, Bryan Lourd and Kevin Huvane will forgo the remainder of their 2020 compensation, while the rest of the proportional cuts max out at 50 percent.

CAA is the latest agency to implement pay cuts as the industry continues to weather the coronavirus pandemic, The Hollywood Reporter has confirmed.

Announced via video conference on Wednesday morning, the reductions in pay will be companywide and proportionate — meaning higher earners take deeper cuts — maxing out at 50 percent, with the exception of co-chairmen Richard Lovett, Bryan Lourd and Kevin Huvane, who will forgo the remainder of their salaries for 2020.

The pay rate for assistants — raised in January amid the #PayUpHollywood movement — will remain unchanged, although they are working an hour less per day in the work-from-home environment.

CAA has not yet laid off any employees as a result of the pandemic-induced industry slowdown, and the pay cuts have been instituted in hopes of continuing to avoid that measure.

“In this time of tremendous uncertainty for individuals, businesses, governments and communities, it is incumbent upon us to look closely at what measures help ensure CAA always remains the strongest company for our employees and clients," CAA said in a statement. 

The agency added, "Making cost reduction decisions is always a thoughtful and deliberate process for us, never more so than under these extraordinary circumstances. We are implementing, among other actions, a reduction in pay among employees across all levels of the agency, with our highest compensated colleagues shouldering a greater responsibility. We deeply appreciate not only the understanding that employees across the company have demonstrated since this unprecedented global crisis began, but also the remarkable support and compassion colleagues have shown one another, clients and many in the community in need."

CAA's move follows similar steps taken at other agencies. Various paycuts have been implemented at Endeavor, Verve, APA, UTA and Paradigm, with the heads of Endeavor, UTA and Paradigm forgoing the remainder of their 2020 salaries entirely. APA has furloughed or suspended some staff, while Endeavor and Paradigm each have laid off about 250 employees — nearly all non-agency personnel at the former, which is more than 10 times the size of the latter company.