Container Store CEO Satish Malhotra will earn less for a while, but his employees will be happy. And the CEO of the American retail chain has decided to reduce his salary so that his employees can enjoy benefits and salary increases.
While Tim Gurner suggests increasing unemployment, there are other CEOs like Malhortra who, despite the obstacles in their sector, have made drastic decisions about their income so that they can benefit their company’s workforce.
A few days ago we said that CEO and property tycoon Tim Gurner became the executioner of the Australian, but also global, workforce after admitting that “we need to see the pain in the economy. Employees need to remember that they work for their bosses, not the other way around,” and the easiest way to remind them of that is to start firing people.
However, there are business managers who, in an attempt to compensate their employees for their work and generate work motivation, use strategies such as paid vacation or, as Malhotra suggests, withholding a percentage of their salary.
10% salary cut
Because of this, Malhotra voluntarily reduced his salary by 10% to offset the cost of raises for others in the company. In a filing with the Securities and Exchange Commission, the company said Malhortra’s annual salary would drop from $925,000 to $832,500 within six months.
Last year, Malhotra’s total compensation was $2.57 million. However, it was unclear what the average raise would be for employees, according to Fortune.
The Container Store reported an adjusted net loss of $10.1 million in its most recent quarterly results, more than $20 million worse than the same period last year.