The directors and supervisory directors of medical technology company Philips waive their bonuses over last year. They do this after a very disappointing year, according to CEO Roy Jakobs. There was still trouble with the sleep apnea devices and Philips still had problems in the supply chain.
Jakobs announced rounds of layoffs and a reorganization in October and last month, resulting in a total of 10,000 jobs disappearing in the coming years.
Philips executives are normally entitled to a cash bonus, but also a bonus in shares which is valid over a longer period of time. The top of the company waives both bonuses. Last year there was a lot of criticism from shareholders of Philips’ remuneration policy, which already had problems with sleep apnea devices and delivery problems. The company says it has learned from this and has come to its decision after discussions with shareholders.
Jakobs, who joined in October, will also receive a basic salary of 1.2 million euros. That is less than the 1.325 million euros earned by his predecessor Frans van Houten.
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