HTC’s 2012 annual report has revealed that HTC executives took a dramatic pay cut last year as the company struggled to maintain profitability. The executive team pulled in a combined total of NT$660.5 million (US$22 million) in salary, retirement pay, bonus and profit sharing during 2012 – 51.3% lower than what was paid out in 2011. For the first time in two years, CEO Peter Chou saw his compensation drop below NT$100 million.
It’s not unusual for top executives to take a pay cut when a company is facing financial difficulties, but there are a few details missing from the report. Since compensation packages of top executives are typically based on profit sharing, the 51% reduction in 2012 may be attributes directly to HTC’s dramatic decline in profits during 2012.
In a separate piece by the WSJ, Peter Chou denied the rumors that he would step down as CEO if the HTC One was not successful in turning the company around.
“I know you guys want to ask, will I quit. There are a lot of rumors that say I would quit, but I never said that. I’m not going to find another job.”
– Peter Chou, CEO of HTC
David Yoffie, a member of HTC’s board of directors confirmed that there have not been any conversations among board members regarding Peter Chou’s position as CEO.
“The board has a lot of confidence in Peter, and share price is not going to drive decisions on the future of the chief executive.”
– David Yoffie
While the HTC One may be the best smartphone of 2013, HTC still faces an up hill battle as it competed directly with Samsung and Apple in the smartphone space.
I think Peter & other HTC executives have learned their lesson. Like not to release so many phones, make exclusive excluded from their bravado, input a team to make sure all their phones are top notch. etc. I’m excited to see what the One Max will turn out to be and the One’s Successor, huge batteries I hope since seeing the the Butterfly S!
I am rooting for HTC to turn things around. I love my HTC One X, and had ordered the unlocked One directly from HTC until I heard the rumor of the One Max. I was interested in getting a phone with a larger screen but didn’t really want to have to switch the Samsung’s Note II or III when it comes out. The Butterfly would probably be just fine for me but since that does not seem like it will make it to the U.S., then I am hoping the Max will combine the new features of the Butterfly with the great build of the One.