In addition to large-scale layoffs in the technology industry recently, the CEO’s salary cut is the most frequently heard. The video conferencing software company Zoom announced the layoff of about 1,300 people. CEO Yuan Zheng asked for a 98% salary cut and gave up his bonus. Bloomberg pointed out that for many senior executives, salary accounts for only a small part of their total salary, mainly in stock awards and options.
Yuan Zheng, CEO of Zoom, had a base salary of US$301,731 last year, accounting for a quarter of his annual salary in 2022. He directly holds or controls more than 13% of the company’s shares through family entities, and has at least an initial estimated wealth of US$5 billion. Yuan Zheng stated on his blog that as the CEO and founder of Zoom, he is responsible for the actions he is taking now, and hopes to show a sense of responsibility in his own actions in addition to language.
In addition to Zoom, Micron also announced that CEO Sanjay Mehrotra will cut his salary by 20%. Mehrotra’s basic salary in fiscal year 2022 is $1.41 million, but his total salary is $28.8 million, mostly from stock awards.
Enterprise communications technology services company Twilio announced a 17% layoff, and CEO Jeff Lawson’s base salary will be cut in half to $65,535. But Lawson’s base salary is less than 1% of his total compensation for 2021, which totaled $14.6 million for the year, according to Twilio’s annual report, the report said.
Some chief executives have not only had their salaries cut, Apple CEO Tim Cook’s salary will be cut by more than 40 percent, to $49 million, citing investor guidance and Cook himself demanding adjustments. Bloomberg believes that his bonus will not be reduced for too long, because Apple’s compensation committee plans to adjust his annual target salary to between the 80th and 90th percentile relative to his peers.
(Source of the first image: Dazhi Image)