PC executives have seen their profits and marketshare so decimated by iPad that they now having to make the ultimate sacrifice: slightly smaller bonuses.
Acer — which saw first quarter net income fall off a cliff — announced its board of directors and CEO will take deep cuts in last year’s compensation.
The Taiwan-based company announced its board of directors will take a 50 percent cut in its 2010 compensation package, while Acer Chairman and CEO J.T. Wang will give up his entire 2010 bonus and director’s compensation. Wang’s bonus reduction was “to take responsibility” for a $150 million inventory write-off.
Acer is also sharing the pain with employees, cutting worker bonuses by 40 percent and eliminating 300 jobs in Europe, the Middle East and Africa. In late May former Acer CEO Gianfranco Lanci blamed his company executives for not reacting quickly to the move to tablets. Taking a page from Apple, the low-cost PC maker said it will give up earlier plans to sell more volume, instead concentrating on producing products that have wider profit margins.
Ed Sutherland is a veteran technology journalist who first heard of Apple when they grew on trees, Yahoo was run out of a Stanford dorm and Google was an unknown upstart. Since then, Sutherland has covered the whole technology landscape, concentrating on tracking the trends and figuring out the finances of large (and small) technology companies.
18 responses to “Acer Execs Cut Bonuses Amid iPad Bruising”
Remember all the people who laughed at the iPad before it was released, saying “Nobody will buy it…”?
i not sure, the acer PADFONE seems like a very good idea. And the acer ux21 ultrathin laptop looks better than the air, dare i say. I think apple should be very wary about ACER, they are producing some nice products, but at the end of the day this means the tech boundries get pushed further and that can only be better for us, (the consumer).
Its hard to imagine American executives doing the same thing.
Pwned!!!!!!!!!!
50% cut from millions isn’t much of a cut. Why don’t they try living on what the employees make? I know they but it just pisses me off.
they earn enough anyway whats a few million off their salaries when they are earning as much as they do
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In America failed business owners get a golden parachute and their businesses are targets for Govt. take over so all of use can share the bail out.
Acer exemplifies the difficulties of designing compelling hardware that must use off the shelf software and still differentiate itself from the competition. They are shackled to Google’s and Microsoft’s vision… and those two haven’t released anything mildly compelling in a very long while.
It’s time to beat Apple at its own game; design something consumers never knew they wanted. Trying to catch up to the status quo and repeatingly failing to meet any semblance of expectation only damages consumer confidence in the brand. Apple’s success has as much to do with their competition’s continued failure to capture the imagination of enthusiasts as it does on their sleek designs and cultivated user experience.
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