Top managers of Intel donate 25% of their salary to save the company
The salary of the CEO of Intel will be reduced by a quarter, and top management – by 15%
Intel Corp., the US multinational and the world’s largest semiconductor chip manufacturer, has recently experienced a significant drop in value, brought by the aggregate economic downturn in the tech industry.
In response to the unfortunate events, the company has decided, rather than firing hundreds of employees, as done by tech companies across the board, to reduce the salaries of the company’s highest earners – its top management. Among these, Intel’s Chief Executive Officer Pat Gelsinger is taking a 25% cut to his base salary; his leadership team is expected to receive 15% salary cuts; senior managers will take a 10% reduction and mid-level managers a 5% cut.
In response to the news, the markets reacted with a small downward adjustment of 0.6%, slipping down to $28.10, however, the decrease comes after the shock of last year, as a result of which the company lost almost half of its value in 2022.
Intel spokesperson claims that in order to navigate the challenging times, the company needs its competent workforce to be able to continue working on the company’s future projects, for this reason it has decided to begin by reducing the pay of its top employees, rather than trickling down to costs to middle and lower level employees.
This move also comes as a response to the news announced last week, where the company said that it expects to have its worst quarterly results to date. Experts believe that the cash wipe is largely the result of stiffer competition and a sharp slowdown in personal-computer demand.
