Uber CEO Dara Khosrowshahi’s pay package has come under fire from a group of shareholders who are questioning why his sign-on deal potentially entitles him to $100 million while employees are facing layoffs in the wake of the Chinese virus pandemic.
The objections came to light this week during Uber’s shareholder meeting when CtW Investment Group, an investment firm working with some of Uber’s shareholders, drew attention to the CEO’s compensation.
As reported by the Observer, CtW highlighted Khosrowshahi’s “golden hello” sign-on package when he joined Uber in 2017. Under the plan, he would receive an equity award worth $100 million if Uber’s market capitalization reaches $120 billion and stays there for more than 90 days.
CtW said in a statement: “Uber’s sign-on package doesn’t encourage long-term retention and has become increasingly untenable as the company’s workers struggle to make ends meet amid the COVID-19 outbreak.”
$Uber's sign-on package doesn't encourage long-term retention and has become increasingly untenable as the company’s workers struggle to make ends meet amid the #COVID19 outbreak. https://t.co/CI8voEOtf4 #corpgov #execpay
— CtW Investment Group (@CtWInvGrp) May 13, 2020
Uber disclosed its plans to layoff 3,700 employees, or 14 percent of its workforce, in an SEC filing last week. The San Francisco-based company also said that CEO Khosrowshahi will forgo his base salary for the rest of the year. Khosrowshahi had a base salary of $1 million in 2019.
But like many corporate executives, Khosrowshahi could still receive compensation in other forms, including stock options and bonuses.
Competitor Lyft said in April that it is laying off 982 employees, or 17 percent of its workforce, and is furloughing hundreds more due to financial pressure from the Chinese virus pandemic.
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