US-based retail firm Container Store has had a challenging period throughout the year. However, Fortune reports that thanks to CEO Satish Malhotra, some employees can expect a pay raise even during this crisis.

According to the report, Malhotra, the company's millionaire CEO, voluntarily reduced his salary by 10%, helping the company to increase employee pay. According to a filing with the US Securities and Exchange Commission, the CEO's six-month salary dropped from $925,000 to $832,500.

Last year, Malhotra's total pay was $2.57 million.

It was not clarified how much the average salary increase for employees would be.

Container Store's latest quarterly balance sheet shows an adjusted net loss of $10.1 million. This figure is $20 million below the revenue recorded in the same quarter a year ago. In May, the company laid off 15% of its support center employees and 3% of its distribution center and store employees. The exact number of those affected by the layoffs was not disclosed.

As part of the salary reduction, the CEO signed a document through the company's chief legal officer stating that he did not consider the salary reduction to be a breach of his contract and that he "in good faith" waived his right to leave the company due to the temporary pay cut. Had Malhorta chosen to leave the company, he would have been entitled to a severance package of double his base salary.
The language in the document also indicated that there were no plans for the company to begin a search for a new leader.

Container Store Chief Legal Officer Tasha Grinnell said, "Thank you for your contributions to the company. We look forward to continuing our journey with your leadership."