NewsCEO lowered his salary to give employees raises

CEO lowered his salary to give employees raises

Shopping at the Container Store chain
Shopping at the Container Store chain
Images source: © Getty | 2023 Getty Images

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, 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 - 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.

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