30 CEOs whose pay has been slashed
26 April 2016
Pay check
Wages for many of the planet's top bosses have been plummeting of late. A perfect storm of economic uncertainty, poor company performance and shareholder unease over executive remuneration is hitting pay levels hard and some business leaders have taken cuts of up to 93%, whether voluntarily or forced. Here are the 30 CEOs who've taken the biggest hit.
Rex Tillerson, ExxonMobil: 18% pay cut
Given the falling price of crude oil – down from $115 (£81) a barrel in the summer of 2014 to as low as $27 (£19) in early 2015 – it's no surprise CEO Tillerson's paycheck dropped 18% to $27.3 million (£19.3m) in 2015.
Robert L.G. Watson, Abraxas Petroleum: 20% pay cut
Another casualty of low oil prices, Watson, who is chairman, president and chief exec of the Texan oil company, volunteered for a 20% pay cut in 2015, a sizable chunk off the $965,000 (£682,000) he took home in 2014.
John Aldersey-Williams, SeaEnergy: 25% pay cut
SeaEnergy also cut its senior execs' pay packages in 2015 in response to the reduction in oil prices. CEO Aldersey-Williams felt it the hardest with a quarter of his pay chopped.
Grant O'Brien, Woolworths: 28% pay cut
The Australian retailer cancelled executive bonuses during the 2014/15 financial year. As a result, CEO O'Brien, who has since left the company, had his wages cut by A$1.5 million ($1.2m /£816,000).
Brian Goldner, Hasbro: 30% pay cut
The CEO of toy company Hasbro lost almost a third of his $14.6 million (£10.3m) compensation package last year as the value of his stock options decreased.
Mario Longhi, U.S. Steel: 35% pay cut
U.S. Steel's chief exec hasn't been immune from the fallout of the company's $1 billion (£707m) losses in 2015. His paycheck fell by 35% last year, with his total earnings totaling $8.6 million (£6m).
Richard Davis, U.S. Bankcorp: 40% pay cut
Banking boss Davis was awarded a remuneration package of $11.56 million (£8.2m) in 2015, down from $19.37 million (£13.7m) in 2014, partly as a result of a change in the value of his pension.
Muhtar Kent, Coca-Cola: 42% pay cut
With the company underperforming on the stock market, Coca-Cola CEO Kent agreed to a 42% pay cut in 2015, reducing his pay from $25.2 million to $14.6 million (£17.8m to £10.3m), a move which appeared to appease investors.
Sifso Dabengwa, MTN: 42% pay cut
The Johannesburg-based CEO of African's largest cellphone company had his compensation package slashed from R48,077,000 to R28,128,000 ($3.3m to $1.9m /£2.3m to £1.3m) in the 2014/15 financial year amid lackluster company performance.
Andrew Mackenzie, BHP Billiton: 43% pay cut
Following five employee deaths and mediocre stock market performance, mining company CEO Mackenzie saw his $8 million (£5.7m) paycheck reduced to $4.6 million (£3.3m) last year.
John Hess, Hess Corporation: 43% pay cut
Hess Corporation posted its biggest loss for 13 years in 2015, so the company's eponymous CEO did the decent thing and trimmed his compensation package from $22.5 million to $12.9 million (£15.9m to £9.1m).
Nigel Travis, Dunkin' Brands: 47% pay cut
Fast food 'breakfast wars' and sluggish sales growth haven't done Dunkin' Brands boss Travis any favors, with his remuneration dropping by 47% to $5.4 million (£3.8m) in 2015.
Ivan Menezes, Diageo: 48% pay cut
The CEO of flagging drinks firm Diageo, Menezes had his pay cut by almost half last year, down from $11.9 million to $6.2 million (£8.4m to £4.4m).
Jiang Jianqing, Industrial and Commercial Bank of China: 50% pay cut
The head of the world's biggest lending bank by assets, Jianqing took home just 550,000 yuan ($85,000 / £60,000) last year, half of what he earned in 2014.
Wang Hongzhang, China Construction Bank: 50% pay cut
Jianqing isn't the only banking boss in China who has endured a savage pay cut. Following pressure from Beijing, all state bank chief execs have had their salaries cut by half, including CCB's CEO Hongzhang.
Mark Durcan, Micron: 50% pay cut
With the chip company in cost-cutting mode, chief exec Durcan offered to take a voluntary pay cut of 50% in 2015, reducing his earnings to $525,000 (£370,000).
Shigehisa Takada, Takata Corp: 51% pay cut
Rocked by the recent airbag scandal, Takata Corp cut back on executive pay in 2015 – CEO Takada earned less than half the 206 million yen ($1.8m / £1.3m) he was awarded in 2014.
Steve Ells, Chipotle Mexican: 52% pay cut
The fast food boss had his overall remuneration slashed by over half in 2015, from $28.9 million to $13.8 million (£20.4m to £9.8m), following fluctuating share prices and a food poisoning scandal that drove customers away.
Monty Moran, Chipotle Mexican: 52% pay cut
Ells' co-CEO Monty Moran didn't escape the pay cull. He also saw his compensation package shrink by more than half, taking home $13.6 million (£9.6m) in 2015, down from the $28.1 million (£19.9m) he earned the previous year.
Azim Premji, Wipro: 55% pay cut
The Indian IT giant experienced sluggish growth and decreasing profits during the 2014/15 financial year, reducing its chairman's revenue-related pay package by almost $1 million (£707,000).
Richard Pennycook, Co-op Group: 60% pay cut
Lauded for his shareholder-pleasing gesture, the chief exec of the UK's recovering Co-op Group requested a 60% pay cut in April simply because his job had become less difficult. His basic pay for the 2016/17 financial year will fall from $1.2 million to £750,000 ($1.7m to £1.1m) and his bonuses will be reduced.
Peter Liguori, Tribune Media: 65% pay cut
Media boss Liguori cleaned up in 2014, accruing $23 million (£16m) including a ton of lucrative stocks and options. He wasn't quite so lucky in 2015, when his compensation package dropped to $8.1 million (£5.7m).
Sergio Marchionne, Fiat Chrysler Automobiles: 68% pay cut
This chief exec earned €21.2 million (£15m) less last year. In 2014, he handled the Fiat/Chrysler merger hence the ultra-lavish remuneration.
Tidjane Thiam, Credit Suisse: 70% pay cut
Just after joining the struggling bank in July 2015, new CEO Thiam asked the board to slash his bonus, with his annual take-home pay falling to 4.57 million Swiss francs ($4.72m / £3.34 million).
Martin Senn, Zurich Insurance Group: 70% pay cut
Former Zurich CEO Martin Senn earned $2.52 million (£1.78m) in 2015, a staggering 70% less than the $8.5 million (£6m) he received the previous year. He left the company in December after a takeover bid he was presiding over failed.
James Park, Fitbit: 76% pay cut
As Fitbit's share price declined during 2015, its top execs missed out on bumper option packages, with CEO Park's pay for the year dropping from $7.8 million to $1.9 million (£5.5m to £1.3m).
Sumner Redstone, Viacom: 85% pay cut
Hit by a downturn in profits and ratings, Viacom's founder and executive chairman Redstone had his pay pruned away by $11.2 million (£7.9m) in 2015, which fortunately for him is a mere dent in his $4.4 billion (£3.1bn) fortune.
Simon Potter, Bahamas Petroleum: 90% pay cut
With prices for the black stuff still on the low side, oil company boss Simon Potter has deferred 90% of his 2016 compensation package to help his firm finance a new exploration well.
Masashi Muromachi, Toshiba: 90% pay cut
Keen to do the right thing during Toshiba's epic accounting scandal, interim CEO Muromachi accepted an enormous pay cut of 90% in July 2015.
Dan Price, Gravity Payments: 93% pay cut
Last April, the Seattle-based credit card processing company CEO slashed his $1.1 million (£780,000) pay by an incredible 93% to help finance a massive pay rise for his employees, almost breaking the internet in the process.
Comments
Be the first to comment
Do you want to comment on this article? You need to be signed in for this feature