Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

US CEO's Rant On Bonuses Puts Executives' Multi-Million Pay In Focus

US CEO's Rant On Bonuses Puts Executives' Multi-Million Pay In Focus

The words by Chief Executive Officer Andi Owen have provoked criticism on social media - and they may soon come back to haunt her as Owen's own pay package for the current period will likely be disclosed by August.
The head of the upmarket furniture-maker MillerKnoll Inc., known for its iconic Herman Miller office chairs, is under fire for telling employees to leave "pity city'' and stop asking about bonuses.

Those words by Chief Executive Officer Andi Owen have provoked criticism on social media - and they may soon come back to haunt her as Owen's own pay package for the current period will likely be disclosed by August.

The prior financial year she was awarded a salary of roughly $1 million, in addition to about $4 million from mostly stocks and options, an annual incentive plan, and covered expenses, like access to a company jet.

Compensation is a hot-button topic for both employees and executives, especially when the economy is going through a rough patch, said Tony Guadagni, a senior principal at consulting firm Gartner Inc.

Scrutiny over executive pay levels is intensifying as surging inflation hits household budgets and the US experiences wide-scale staffing shortages, which has emboldened many employees to push for higher wages.

"I think in a time like this, where the news cycle has been dominated by inflation for 18 months, where employees feel their paychecks not going as far as they used to - organizational leadership would be wise to be sensitive to that,'' he said.

The 90-second leaked recording captures Owen chiding staff at the end of a 75-minute internal company meeting for speculating too much about the annual bonus payouts.

"Spend your time and your effort thinking about the $26 million we need, and not thinking about what are you going to do if you don't get a bonus," Owen said in the video, referring to an internal metric. "I had an old boss who said to me one time, 'You can visit pity city, but you can't live there.' So people, leave pity city."

Following the meeting, Owen sent an email to staff and met with leaders across the company to address their concerns, according to a person familiar with the situation.

"Andi fiercely believes in this team and all we can accomplish together, and will not be dissuaded by a 90-second clip taken out of context and posted on social media," MillerKnoll spokesperson Kris Marubio said in an emailed statement.

The worry by staff at the Michigan-based company over a possible shrinking bonus pool comes amid a drop in sales at MillerKnoll this year as businesses pulled back on spending. Companies are downsizing their real estate footprint as many workers continue to work remotely after the pandemic, dampening demand for office furniture.

Other CEOs' salaries have been in the spotlight in recent months in the wake of mass layoffs. Some, like Goldman Sachs Group Inc.'s David Solomon to Morgan Stanley's James Gorman, have already accepted pay cuts, while others have yet to report their most recent compensation packages.

Though CEOs make around 300 times the average employee, only about a third of the rank-and-file polled by Gartner thought the wage disparity was unfair. But as economic anxieties grow, there's a chance that employees may become increasingly sensitive to the difference in their pay and those in the C-Suite, Guadagni said.

"I wouldn't be surprised if we start to see the tide turn on that a little bit, especially depending on what happens to the economy in the next six to 12 months,'' he said.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
×