CEO lowered his salary to give employees raises
7:32 AM EDT, October 2, 2023, updated: 9:04 AM EDT, October 5, 2023
The CEO of Container Store has voluntarily reduced his salary by 10% to offset the cost of raising the salaries of other employees in the company - reports fortune.com, adding that the company is currently facing difficulties in the market.
The service informs that the annual salary of Satish Malhortra will decrease from $925,000 to $832,500 over a period of six months.
He's lowering his salary so others can get more
Last year, Malhotra's total compensation amounted to 2.57 million dollars - Fortune.com reports. However, it has not been announced what the average salary increase for other employees will be.
"The Container Store reported an adjusted net loss of $10.1 million, which is over $20 million more than the same period last year. In May, it announced a series of layoffs, affecting approximately 15% of support center staff and 3% of distribution center and store employees," reports the industry service.
Malhotra also signed a letter from the company's legal director, in which he agreed that salary cuts should not be treated as a breach of contract in the future. The reduction will also not be able to be a "valid reason" for the director's departure.
Satish Malhotra has been working at this company since 2021.
