- Tuesday, 24 November 2009
- INQ Mobile
- RSS
We twa hae run about the braes, And pu'd the gowans fine. - Robert Burns
Micron cuts employee salaries whilst rewarding execs
IT REALLY SHOULD come as no surprise that when it comes to the corporate financial crunch, those at the top always find ways to protect and even increase their share of hoarded gold. Yet, when we came across evidence Micron execs were at it, we idealistic and naïve INQsters were saddened.
Back in December, Micron informed its hardworking employees the dire state of the economy was forcing it to cut their base salaries by up to five per cent. The firm also said it would be immediately suspending employee bonus payments, including those for the period ending in February.
Executives and directors were also purportedly to take a 20 per cent pay cut, to show the troops they weren't alone in taking a hit to their wallets.
But according to recent filings on SEC's EDGAR Online, it would appear Micron employees were being led a merry dance down the garden path, as execs engaged in the most cynical of money shuffling.
Seemingly noble Micron execs actually managed to secure themselves lucrative $0 stock option grants, which translated into millions of dollars. For example, on the day of the grant, CEO Steve Appleton's slice was worth $3.5 million whilst Micron COO/President, Mark Durcan's, was worth $1.5 million. Poor old Ron Foster, the firm's CFO, only managed to rake in one million dollars through the scheme, which seems sad, seeing as he's the company money man.
The stock option grants are most probably a multiple of the employee's annual base salary, proving the financial crisis hasn't necessarily taken its harsh toll on EVERY Micron employee's take-home pay.
As much as it pains us to say it, Micron execs probably aren't the only ones playing dirty when it comes to this type of self indulgent avarice. After all, the fat cats can't be expected to give up their cream just because everyone else is on rations of bread and water. µ
L'Inq
See for yourselves here
Share this:
ShareBusiness Intelligence Software
Customer Relationship Management (CRM)
Enterprise Accounting Software
Enterprise Resource Planning (ERP)
Enterprise Systems Management
this makes me sad, looks like i'll be avoiding micron ic's now.
Who cares what you pay any body! In this economy it's nearly impossible to find anyone willing to do entry level jobs or middle management. Best to spend a lot to keep who you have. It's not worth paying out an extra few million on a good CEO because if someone else is willing to pay more for a good CEO you can just get another one. I'm an experienced CEO and I'm willing to work for minimum wage! Hire me!
I made a mistake at my last company that cost a few bucks but you are way better off hiring me for 25000 a year than some brilliant guy for 25 million. Can he really be 1000 times better than me?
The link does not indicate when the options were granted - only when they were exercised. I doubt they were granted in the last two months.
Immoral behavior in Boise, Idaho? It can't be! They've been Reaganomics lovers for 28 years. Surely they've learned their lesson.
got hit with 7-15% pay cut as of the 2nd January. The reasoning was to stay competative. With who?
After releasing record profits company wide and record revenue its a bitter pill to swallow. Especially when they are rumored to axe 16000 US based jobs in the coming days.
Thing about stock options, is they don't actually cost the company anything. It's the INVESTORS who take the hit, as the value of the other shares go down.
Although the company may be liable for tax on those shares.
Senior management maybe ought to be totally paid in stock options, then they might (or might not) be held more accountable by the shareholders.
Cheers,
Wol
The stock option is not just for the senior management it was for all Micron employees (depending on government regulation for each site). So, next time get your story straight before printing tabloid crap.
when are these "wise guys" in charge predicting Micron will make a profit?
How much cash has Micron got left, when will need to call in administrators?
Yep, spent 32 years in this fantasy land and learned early, if you don't understand the nature of the corporate beast you're simply not paying attention. If you do understand you either sell your soul to the devil and stay (I did) or leave.
If you stay and keep taking their money, why complain? That was your choice. If you leave, well, more power to you.
I recently retrieved my soul via retirement so things can turn out very, very good even to us soul merchants.
The options may have gone out across the entire company, but the majority of employees could never hope to see a $0 strike price on the 50 to 100 options they were granted. (Options that vest over several years, rather than instantly, and have strike prices that are currently wishful thinking.)
I remember 1 phrase from the book animal farm... "All employees are equal, but some are more equal than others."
Describes the situation eh?