Sun McNealy's pay down 98% this year

Lean times for IT bosses


Sun Microsystems boss Scott McNealy expects to receive only his basic salary this year, as the slowdown in the IT market means top execs will have to forgo their usual stratospheric bonuses.

Today's Financial Times reports that McNealy, who received a $4.7m bonus last year will receive nothing this year. "I'm basically working for $100,000."

McNealy can still consider himself fortunate compared to his peers. Cisco chief executive, John Chambers, cut his salary to $1 as a symbolic gesture to reflect the pain he felt at disappointing investors - and slashing 8,500 jobs.

Sun is one of the few high technology firms that hasn't shed jobs during the current slowdown in IT spending and McNealy has made preserving jobs, if necessary through radical cost cutting measures, a priority.

In the first week of July all but essential Sun staffers will be asked to take holidays or unpaid leave. The move part of a program of cost-cutting measures announced after Sun last month reported pro forma net income for its third quarter was down 43 per cent on declining sales.

Speaking during a two day meeting of chief executives in West Virginia, McNealy indicated he was hopeful Sun's revenues would rebound in 2002 but said IT firms could, at best, only guess at future demand. He said it's getting harder to spot trends and suggested any talk that the industry has seen the worst of a slowdown in spending is premature.

McNealy said: "People are claiming that they're seeing the bottom. I don't know where they're getting that data. They certainly didn't see the cliff, so how in the world can they see the bottom?" ®

Related Stories

Cisco boss slashes salary to $1
Sun and HP to close
Price wars, budget cuts and Sun results
Cisco loses $2.69 billion on declining sales


Other stories you might like

  • Stolen university credentials up for sale by Russian crooks, FBI warns
    Forget dark-web souks, thousands of these are already being traded on public bazaars

    Russian crooks are selling network credentials and virtual private network access for a "multitude" of US universities and colleges on criminal marketplaces, according to the FBI.

    According to a warning issued on Thursday, these stolen credentials sell for thousands of dollars on both dark web and public internet forums, and could lead to subsequent cyberattacks against individual employees or the schools themselves.

    "The exposure of usernames and passwords can lead to brute force credential stuffing computer network attacks, whereby attackers attempt logins across various internet sites or exploit them for subsequent cyber attacks as criminal actors take advantage of users recycling the same credentials across multiple accounts, internet sites, and services," the Feds' alert [PDF] said.

    Continue reading
  • Big Tech loves talking up privacy – while trying to kill privacy legislation
    Study claims Amazon, Apple, Google, Meta, Microsoft work to derail data rules

    Amazon, Apple, Google, Meta, and Microsoft often support privacy in public statements, but behind the scenes they've been working through some common organizations to weaken or kill privacy legislation in US states.

    That's according to a report this week from news non-profit The Markup, which said the corporations hire lobbyists from the same few groups and law firms to defang or drown state privacy bills.

    The report examined 31 states when state legislatures were considering privacy legislation and identified 445 lobbyists and lobbying firms working on behalf of Amazon, Apple, Google, Meta, and Microsoft, along with industry groups like TechNet and the State Privacy and Security Coalition.

    Continue reading
  • SEC probes Musk for not properly disclosing Twitter stake
    Meanwhile, social network's board rejects resignation of one its directors

    America's financial watchdog is investigating whether Elon Musk adequately disclosed his purchase of Twitter shares last month, just as his bid to take over the social media company hangs in the balance. 

    A letter [PDF] from the SEC addressed to the tech billionaire said he "[did] not appear" to have filed the proper form detailing his 9.2 percent stake in Twitter "required 10 days from the date of acquisition," and asked him to provide more information. Musk's shares made him one of Twitter's largest shareholders. The letter is dated April 4, and was shared this week by the regulator.

    Musk quickly moved to try and buy the whole company outright in a deal initially worth over $44 billion. Musk sold a chunk of his shares in Tesla worth $8.4 billion and bagged another $7.14 billion from investors to help finance the $21 billion he promised to put forward for the deal. The remaining $25.5 billion bill was secured via debt financing by Morgan Stanley, Bank of America, Barclays, and others. But the takeover is not going smoothly.

    Continue reading

Biting the hand that feeds IT © 1998–2022