Vitesse Semiconductor Corporation CEO agreed to a temporary 20% reduction in his base salary
Its a great move by the board of Vitesse Semiconductor Corporation VTSS. I think they are taking the correct steps in investing in technology and at the same time cutting the expenses.
In the last 2 months they have done a great job in technology:
- VITESSE AND DUNE NETWORKS DELIVER INTEROPERABLE END-TO-END SOLUTION
- Advanced Vitesse 10 Gigabit Ethernet LAN/WAN PHY Sets New Standards for Compact SFP+-Compliant Transceiver
As previously disclosed in a Current Report on Form 8-K filed by Vitesse Semiconductor Corporation (the “Company”) with the Securities and Exchange Commission on February 26, 2009 (the “February Form 8-K”), Christopher Gardner, the Company’s Chief Executive Officer, agreed to a temporary 20% reduction in his base salary. The February Form 8-K also disclosed agreements between the Company and Richard Yonker, the Company’s Chief Financial Officer, and Michael Green, the Company’s Vice President, General Counsel and Secretary, for temporary 10% reductions in their base salaries. These temporary salary reductions were agreed to as part of the Company’s expense reduction initiative and were contemporaneous with a temporary reduction of salaries for all employees through the end of fiscal year 2009, ended September 30, 2009. On October 1, 2009, the salaries of the Company’s employees other than Mssrs. Gardner, Yonker and Green were reinstated to the same levels as in effect prior to the reduction.
Yes I agree.I wish every company can do the same. This way we can stop the layoffs as well as increase the employee motivation to work.
It would be great if any CXO can comment on this