InMobi offers stock options to senior employees facing pay cut
The stock component starts at 10% of an employee’s salary, with the percentage increasing at the leadership levels
The lockdown has prompted many companies and startups to take the undesireable steps -- salary cuts. But the combined effect of the pandemic and slow economy has left them with no choice but to lay off employees and slash salaries.
InMobi is the latest to have announced pay cuts. In a blog post, Naveen Tewari, the founder and group CEO of the company revealed that they have to take some “tough and compassionate decisions” during these trying times.
He writes: “At InMobi Group, our guiding principle has been one of shared celebration and shared sacrifice. In order to manage our finances better while minimizing the impact on as many people as possible, we have revised our compensation structure for our employees, effective April 2020. Under this revised structure, employees will receive a portion of their salary in the form of stock, instead of cash. This stock component starts at 10% of an employee’s salary, with the percentage increasing at the leadership levels.”
Tewari explained that InMobi is feeling the impact of the financial crisis although at a much lower scale than other businesses.
“Our geographical spread - 50% of our revenue comes from North America, and another 25% from China - and the sequential nature of the outbreak has helped cushion the impact for the InMobi Group. But flat is the new growth today - every business needs to ensure it survives first before it can thrive,” he writes.
