By Jessica Sier

L'Oreal SA renounced its dividend increase on Tuesday, adding that it will reduce pay for the chief executive officer and chairman for the rest of 2020 due to the coronavirus.

The French cosmetics company said it will no longer offer its planned 10.4% dividend increase, and will instead propose the 3.85 euro ($4.17) dividend it paid out in 2019.

The company's annual general meeting is set for June 30 and will take place behind closed doors.

Jean-Paul Agon, L'Oreal's chief executive officer and chairman, has renounced 30% of his fixed and variable remuneration for 2020, including any performance shares should a plan emerge in 2020, the company said.

Further, L'Oreal will renounce any share buyback programs planned for 2020.

L'Oreal has also created two funds to support social programs with sustainability aims, with a combined investment of EUR150 million.

Write to Jessica Sier at jessica.sier@wsj.com

(END) Dow Jones Newswires

May 12, 2020 12:54 ET (16:54 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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