Famous CEOs cut their own salaries as part of the contraction

In recent months, many American companies have begun to take austerity measures in the face of falling profitability.

Companies took steps to freeze hiring, cut spending and initiate layoffs. Business austerity measures have been expanded to include some CEO salaries that have reached record levels in recent years.

THEY EARNED AN AVERAGE OF $14.7 MILLION IN 2021

CEOs of many companies, from giant tech companies to the largest banks in the US, have had their salaries cut. According to the latest Wall Street Journal analysis, CEOs of the largest US companies earned an average of $14.7 million (including dividend income) in 2021.

However, with the monetary tightening beginning in 2022, the decrease in financial income and demand caused companies to tighten austerity. While some companies laid off thousands of their employees, some companies halted their new investments.

CEOs of companies like Goldman Sachs, Apple and Intel have cut their own salaries. Although these executives cut their salaries, their income remained above the millions of dollars.

Here are some of those CEOs:

Tim Cook

Tim Cook, CEO of Apple, one of the world’s most valuable companies, cut his salary by 40 percent. Cook, with the decision he made last month, wanted his revenue this year to drop 40 percent from 2022 to $49 million.

This number actually means that Cook is paid well above the CEO average. The famous tech billionaire earned nearly $100 million in revenue from payments from the company in 2021.

Unlike many other tech companies, Apple has avoided layoffs for now, though it has cut back on hiring in some areas.

PAT GELSINGER

Pat Gelsinger, chief executive of chipmaker Intel, also joined the chief executives who took a pay cut this year. It has been announced that Gelsinger’s revenue will be reduced by 25 percent.

Intel’s recent disappointing earnings also led to a downgrade in the report’s credit rating. Following the report, the company announced that it would also cut the salaries of other executives.

Intel did not report the value of Gelsinger’s pay package for 2022. Gelsinger is known to have earned around $179 million in 2021. The famous CEO is currently one of the highest paid executives in the world.

The company also announced last year that it would begin layoffs in an effort to cut costs.

JAMES GORMAN

The board of directors of the US investment bank Morgan Stanley announced that it will cut the salary of CEO James Gorman in 2022.

Morgan Stanley cut Gorman’s salary package, which includes salaries and bonuses, by 10 percent, to $31.5 million for 2022 payments, a year in which earnings plummeted and shares plunged.

Gorman, 64, announced 2022 as the most profitable year in the bank’s history. Gorman’s salary increased 6 percent in 2021, making Gorman the highest-paid bank chief executive.

Morgan Stanley’s profits fell 27 percent in 2022. The company laid off 1,600 employees late last year.

david solomon

Goldman Sachs chief executive David Solomon also took a pay cut of about 30 percent.

One of the highest-paid bank CEOs in the US, with earnings of $35 million in 2021, Solomon’s earnings in 2022 declined 30 percent to $25 million, and the stock price and The bank’s profitability fell.

The bank’s profit in 2022 fell 48 percent compared to the previous year. Goldman Sachs also announced it would lay off more than 3,000 employees in the biggest layoff decision since the 2008 financial crisis.

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On the other hand, although companies such as Amazon, Microsoft and Google do not report cuts in CEO salaries, it is thought that there will be a drop in executive pay packages due to the decline in the value of shares. of companies