Tags: Coronavirus | hewlett | packard | cut | costs | ceo | pay

Hewlett Packard to Cut Costs by $1B, Reduce CEO Pay by 25% on Pandemic Woes

Hewlett Packard to Cut Costs by $1B, Reduce CEO Pay by 25% on Pandemic Woes
(Ricochet69/Dreamstime)

Thursday, 21 May 2020 05:21 PM

Hewlett Packard Enterprise on Thursday unveiled a plan targeting gross savings of at least $1 billion by 2022 and cut the base salaries of top executives by 25% as the software maker seeks to weather the coronavirus crisis.

Shares (HWP), down about 35% this year, fell 5.4% in extended trading after the company missed second-quarter revenue and profit estimates.

"The global economic lockdowns since February significantly impacted our fiscal Q2 financial performance," Chief Executive Officer Antonio Neri said in a statement.

Beginning on July 1, through the remainder of fiscal year 2020, the base salaries of the CEO and officers at the executive vice president level will be reduced by 25%, HPE said.

The board also cut by 25% the portion of the annual $100,000 cash retainer entitled by directors for the period beginning on July 1 through the remainder of fiscal 2020.

HP, which in April withdrew its 2020 forecast, posted second-quarter adjusted earnings of 22 cents per share, missing the average analyst estimates of 29 cents, according to IBES data from Refinitiv.

Revenue of $6.01 billion also missed estimate of $6.29 billion.

© 2020 Thomson/Reuters. All rights reserved.


   
1Like our page
2Share
Companies
Hewlett Packard Enterprise on Thursday unveiled a plan to cut costs by at least $1 billion by 2022 and said it would reduce the base salary of its chief executive officer by 25%, in response to the impact of the COVID-19 pandemic.
hewlett, packard, cut, costs, ceo, pay, pandemic
184
2020-21-21
Thursday, 21 May 2020 05:21 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved