Print 20 comment(s) - last by michael2k.. on Jun 24 at 1:30 PM

Failures cost executives half their salaries, bonuses, and retirement pay

2012 was a horrific year for Taiwanese phonemaker HTC Corp. (TPE:2498).  While some its handsets achieved modest sales, such as the 5-inch Droid DNA, HTC's smartphone market share plunged nearly 20 percent and its stock was beaten down 40 percent.  One particular nasty blow came when Apple, Inc. (AAPL) secured a ban on U.S. sales of HTC handsets in May 2012, shutting down its rival's biggest market.  HTC had been the top smartphone seller in the U.S. for much of 2011.

As a result of these failures, HTC's executives took a big hit to the purse in 2012, according to The Wall Street Journal.  The newspaper is quoting HTC officials as stating that executive compensation -- including salaries, bonuses, and retirement pay -- dipped to NT$660.5M USD ($21.89M USD) in 2012, down 51.4 percent from NT$1.36B ($45.1M USD) in 2011.

Two of the hardest hit are still with HTC -- HTC CEO Peter Chou and president of engineering Fred Lui.  Their compensation dropped to an even NT$100M ($3.32M USD) -- the lowest level in two years.  Mr. Chou made waves early this year when it was revealed that he vowed to resign if the company's next flagship device did not sell well.

Taiwan Dollars
Poor performance led to a big paycut for HTC executives in 2012. [Image Source: Reuters]

However, the cuts across the board may have driven out some executives.  HTC is rumored to have bled a variety of executive, artistic, marketing, and engineering talent in 2012, as employees jumped ship for more lucrative offers.

After the boom years of 2010 and 2011, which featured meteoric growth, and the disappointment of 2012, 2013 seems to be off to a modest start for HTC thus far.  Despite the flop of the HTC First "Facebook Phone", the company has seen strong sales of its HTC One flagship device, which should help to further stabilize the company's tepid financials.

HTC is rumored to have paid Robert Downey Jr. (who plays Marvel superhero Iron Man) $12M USD to be the face of a new ad campaign for the phonemaker.  HTC is looking to compete with the marketing pull of South Korea's Samsung Electronics Comp., Ltd. (KSC:005930), who is offering 1 million copies of the new Jay-Z album to Galaxy S IV buyers.

Source: The Wall Street Journal

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

RE: Learn to be like the west
By Shig on 6/21/2013 1:49:34 PM , Rating: 3
Not really Shrag4, now what companies do is fire employees, the stock goes up, they cash in said stock, then they could care less how the actual company does, they're set with their golden parachute.

Check out Comcast's executive pay vs. their customer service and cost per megabit. It's painful to look at.

RE: Learn to be like the west
By BRB29 on 6/21/2013 2:54:42 PM , Rating: 2
You forgot that they always fire the part time and lowest people first to get huge numbers for wow effects on stocks. Then they usually hire people again without announcing it. Smoke and mirrors, nothing new.

RE: Learn to be like the west
By seamonkey79 on 6/21/2013 4:26:43 PM , Rating: 2
Depends... my CEO gets paid a little more than 1700x what the average employee earns... it is an 80,000+ employee company, but there you have it.

RE: Learn to be like the west
By mik123 on 6/21/2013 7:53:58 PM , Rating: 2
So, assuming average salary at your company is $100k, your CEO makes $170M? Which company is that?

RE: Learn to be like the west
By Camikazi on 6/22/2013 3:24:24 PM , Rating: 2
With 80k employees the average isn't gonna be anywhere near 100k for salary. Usually the highest amount of employees make the least or close to the lowest for salary depending on the industry of course.

"This is about the Internet.  Everything on the Internet is encrypted. This is not a BlackBerry-only issue. If they can't deal with the Internet, they should shut it off." -- RIM co-CEO Michael Lazaridis

Latest Headlines
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
The Samsung Galaxy S7
September 14, 2016, 6:00 AM
Apple Watch 2 – Coming September 7th
September 3, 2016, 6:30 AM
Apple says “See you on the 7th.”
September 1, 2016, 6:30 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki