French multinational hospitality giant Accor announced last week the launch of the “ALL Heartist Fund” to help its employees affected by coronavirus (COVID-19).
A fund of €70 million euros has been created from Accor’s Board of Directors’ proposal for a 2019 dividend payment of €280 million euros. According to the news, the decision was made after consultation with the Group’s main shareholders JinJiang International, Qatar Investment Authority, Kingdom Holding Company, and Harris Associates.
The “ALL Heartist Fund” will operate as a “Covid-19 special purpose vehicle” and assist the Group’s 300,000 employees for pandemic related hospital expenses and for those who do not have social security or medical insurance.
Furloughed employees and partners of Accor facing financial difficulties will also be supported, according to the announcements. Sebastien Bazin, Chairman and CEO of Accor, announced that he will forego 25 percent of its compensation during the crisis, with the cash equivalent to be contributed to the Heartist Fund.
Accor has closed more than half of the brand’s 5,000 hotels worldwide on account of COVID-19, with more certain to be closed in the coming weeks.