HTC cuts executive pay by half following a bad year
Following its worst financial year ever, HTC has cut its executive salaries and bonuses by half.
In its annual report, HTC mentioned that it awarded its senior executives a total of NT$660.5 million ($21.94 million) in 2012, which is down 51.4% from the NT$1.36 billion ($45.18 million) it paid out in 2011. HTC CEO Peter Chou and president of engineering Fred Lui have also not been safe from the cuts, as they both saw their annual remuneration fall below NT$100 million ($3.3 million) for the first time in two years.
The Taiwanese manufacturer is losing market share as it struggles to market its products in a segment that is being dominated by the likes of Samsung and Apple. HTC has been unable to continue the momentum it gained during 2010 and 2011, and has been hurt by unsuccessful marketing and product delays. This year, HTC has already lost a number of key employees, and its first Facebook device, the HTC First, has been heavily discounted on account of low sales less than two months since its launch.
Peter Chou told stockholders to be “patient” during HTC’s annual stockholder meeting on Friday, and mentioned that the organization would redouble its marketing efforts for the HTC One, its current flagship. Already there are rumours that HTC has signed Robert Downey Jr. for a two-year marketing campaign deal that is allegedly worth $12 million.