The succession of Qualcomm CEO Paul Jacobs to the post of chairman, replacing Irwin Jacobs, garnered headlines on March 3. Not so widely reported was the younger Jacobs’ plan to take a 25 percent reduction in salary for fiscal 2009.
The CEO joins Qualcomm President Steve Altman in taking the reduction, which Jacobs told shareholders at an annual meeting March 3 that it was their way of showing solidarity with the rest of the employees who were asked to take a wage freeze.
According to a January report by the Associated Press, Paul Jacobs pulled down an $18.6 million compensation package last year. His base salary in 2008 was in the $1 million range.
Qualcomm boasts a relatively strong balance sheet compared with other companies struggling in today’s economy. The company reported net income of $341 million in its first fiscal quarter.
The company has taken steps to cap its headcount, but it’s not getting stingy in the area of R&D, where it plans “significant” spending.
Shares were trading at $36.20 at mid-day Eastern time today.