Intel CEO Pat Gelsinger took a 25% cut from base pay.
US chip giant Intel Corp cut the salaries of its executives and senior staff, including its CEO, to save cash for investments. The company is struggling with sharp declines in revenue and profits, cutting management salaries across its entire platform.
“The reductions will range from 5% of base pay for mid-level employees to as much as 25% for Chief Executive Pat Gelsinger, while the company’s hourly workforce’s pay will not be cut,” Reuters mentioned.
CEO Pat Gelsinger is taking a 25% cut from his base salary, the chipmaker said.
The company’s management team will have their remuneration reduced by 15%. Senior managers will receive a 10% discount and middle managers’ salaries will be reduced by 5%.
Hourly workers and employees below the seventh level of the corporate system will not be affected.
“As we continue to navigate macroeconomic headwinds and work to reduce costs across the company, we’ve made several adjustments to our 2023 employee compensation and rewards programs,” Intel said in a statement. “These changes are designed to impact our executive population more significantly and will help support the investments and overall workforce needed to accelerate our transformation and achieve our long-term strategy.”
Gelsinger joins the list of CEOs with pay cuts. Goldman Sachs Group Inc CEO David Solomon this week said 2022 compensation was down about 30% to $25 million. The package includes a base salary of $2 million and variable compensation of $23 million and comes in the form of limited stock units.
Other CEOs of large corporations have also received pay cuts. Apple CEO Tim Cook has set his 2023 salary to $49 million, a more than 40% cut. million annually through June 2022.
