Philips cancels 2022 bonuses for senior executives, and its market capitalization plummeted 70% last year

Thank you, Mr. Air, a netizen of CTOnews.com, for your clue delivery! CTOnews.com, Feb. 22 (Reuters)-Dutch medical technology company Philips said on Tuesday local time that it would cancel the 2022 bonus for its executives after a global recall of breathing devices led to a 70% drop in its market value.

Philips noted in its annual report that the current management committee had abandoned any annual incentive spending for 2022 in view of the company's performance and the negative experiences of shareholders and other stakeholders.

"2022 has been a very disappointing year for Philips and its stakeholders," Philips said.

Frans van Houten, the former chief executive of Philips, did not give up his short-term bonus of 208370 euros in 2022, according to the report. (CTOnews.com Note: current about 1.527 million yuan). In October last year, Roy Jakobs took his place after the recall.

Philips clashed with shareholders last year when it urged the supervisory board to cancel 2021 bonuses for Van Houten and other executives, but failed. The recall began in 2021.

In addition, Philips said in its annual report that it was in talks with the US Department of Justice on a solution to the recall.