Intel Corp slashes pay across company, including CEO

US-based chipmaker giant Intel Corp has slashed salaries of management, and senior staff, including the CEO to preserve cash for investment. The company is struggling with a rapid drop in revenue and earnings, therefore is cutting management pay across the 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.

Chief Executive Officer Pat Gelsinger is taking a 25% cut to his base salary, the chipmaker said.

His executive leadership team will see their pay packets decrease by 15%. Senior managers will take a 10% reduction, and the compensation for mid-level managers will be cut by 5%.

Hourly workers and employees below the seventh tier in the company’s system won’t 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 has joined the list of CEOs taking pay cuts.

This week, David Solomon, the chief executive officer of Goldman Sachs Group Inc, compensation was reduced by about 30% to $25 million for 2022. The package includes a $2 million base salary and $23 million in variable compensation, with $16.1 million of that in the form of restricted stock units.

Other CEOs of big firms have also witnessed pay cuts. Apple Inc CEO Tim Cook will receive a pay cut of more than 40% to $49 million for 2023.

Microsoft Corp., which announced on 18 January that it’ll slash 10,000 jobs, gave CEO Satya Nadella a 10% bump to $55 million in the year through June 2022.