CEOs are taking pay cuts to avoid more layoffs and to combat the industrywide reductions.
These pay cut announcements, along with the massive layoffs that have rocked the tech industry, are part of a quest to cruise out the economy slump caused by high inflation and rising interest rates.
Pay cuts have recently been announced for Apple CEO Tim Cook, Morgan Stanley CEO James Gorman, and Goldman Sachs CEO David Solomon, among others. While Intel Corporation is making significant cuts to employee and executive pay, ranging from 5% of base pay for mid-level employees to up to 25% for Chief Executive Pat Gelsinger.
According to documents filed with the Securities and Exchange Commission in January, Apple CEO Tim Cook will take a 40% pay cut in 2023, bringing his annual target salary to $49 million. While Intel CEO Pat Gelsinger announced on February 1 that he would take a 25% pay cut this year as part of a cost-cutting effort to avoid layoffs. Gelsinger will be joined by the company’s other top executives, who will also be taking pay cuts ranging from 5% to 15%.
In addition, Goldman Sachs CEO David Solomon will receive a 30% pay cut in 2022, bringing his annual salary to $25 million. Morgan Stanley CEO James Gorman received a 10% pay cut in 2022, totaling $31.5 million. Their reductions are the result of their firms struggling against economic headwinds and responding to a challenging economic and market environment.
Alphabet, Google’s parent company, has not released any details, but CEO Sundar Pichai has stated that senior executives will receive significantly lower bonuses this year.
The sources for this piece include an article in Gulfnews.