Billionaire Michael Dell Takes Pay Cut ‘In Light Of’ Coronavirus
According to SEC filings, Dell Technologies founder and CEO Michael Dell will forgo his roughly $950,000 base salary in light of the “uncertainty created by the global coronavirus pandemic.”
After donating $100 million to help fight the coronavirus pandemic, Dell Technologies CEO Michael Dell has decided to forgo all of his base salary due to the “disruption” caused by the coronavirus pandemic, according to a filing with the U.S. Securities and Exchange Commission.
“In light of the disruption and uncertainty created by the global coronavirus (COVID-19) pandemic, effective on April 7, 2020, Michael S. Dell, [Chairman and CEO] of Dell Technologies Inc., has agreed by waiver to effect a temporary reduction in the base salary otherwise payable to him, effective with the start of the Company’s second fiscal quarter on May 2, 2020,” the company said in an SEC filing dated April 8.
The IT legend and billionaire has agreed to forgo through the last payroll period in Dell’s current fiscal year, which ends Jan. 29, 2021, all of his base salary except what is necessary for him to fund his contributions to Dell’s health and welfare benefits plans, according to the filing.
According to the company’s annual proxy statement filed in 2019, Michael Dell’s salary in fiscal year 2019 was $950,000, which has stayed the same since fiscal year 2017. Dell’s salary waiver will not modify other rights under his employment agreement or other compensation except with respect to incentive arrangements applicable to him that are determined by reference to his base salary, said the SEC filing.
[Related: Dell Extends Hyperconverged Market Share Leadership Dominance]
Dell is currently ranked No. 33 in terms of the richest people in the world, with a net worth of approximately $27 billion as of April 7, 2020, according to Forbes real-time net worth tracker. The self-made billionaire founded Dell in 1984 inside his dorm room at the University of Texas in Austin.
Last week, Dell and his wife’s foundation announced that it is dedicating $100 million to help small businesses and organizations combat the global coronavirus pandemic as well as find treatments for COVID-19.
“The magnitude of the problem is daunting, and it is vitally important to us that help reaches as many people and families as possible,” said Dell in a LinkedIn post. “Now more than ever, it’s imperative to stay home, if possible, in a collective effort to support those working selflessly on the front lines to keep us well.”
Susan and I are dedicating $100 million through @DellFdn to support global initiatives related to COVID-19 so more people get the help and support they need during this difficult time. https://t.co/0GigG02nwr via @LinkedIn
— Michael Dell (@MichaelDell) April 3, 2020
The Michael & Susan Dell Foundation is dedicating $100 million to initiatives and projects related to coronavirus relief. Approximately $80 million is being committed to providing relief for communities, focusing on supporting healthcare and education systems, sustaining the work of nonprofits and social enterprises, and stabilizing livelihoods and small businesses. Another $20 million is being dedicated to ensuring that the coronavirus becomes treatable and is eradicated as quickly as possible. The foundation will give the funding to the COVID-19 Therapeutics Accelerator, which was launched by the Bill & Melinda Gates Foundation, Wellcome, and Mastercard, to identify potential treatments for COVID-19 and accelerate their development and distribution.
“We are all navigating this new normal together,” Dell said. “As we lock arms virtually and try to help one another in the ways we can, our vast world suddenly feels a little smaller and a lot more connected. And for that, we are grateful.”