GoPro Chief Goes From $287.2 Million A Year To $1; Sale Talk Surfaces
GoPro (GPRO) Chief Executive Nick Woodman became the best-compensated U.S. executive for 2014, when his company went public. Now he’ll be paid a lot less — at least in annual compensation, though talk of a possible sale of his company surfaced Monday.
X The action-camera maker slashed Woodman’s cash compensation for this year to $1, according to a regulatory filing Monday, when San Mateo, Calif.-based GoPro trimmed its fourth-quarter revenue forecast and announced it will cut more than 20% of its workforce.
Shares of GoPro tumbled more than 20% at one point, but it pared those losses to less than 10% in afternoon trades as word surfaced on CNBC the company has hired JPMorgan (JPM) to put itself up for sale, citing unnamed sources.
But then Woodman told Bloomberg that while JPMorgan is it’s banker, it had not enlisted the brokerage to explore sale options. Woodman did not rule out possible partnerships in the future, however. As a result, shares fell back down 12.8% to 6.56.
Woodman, 42, rocketed to the top of the Bloomberg Pay Index, a ranking of the highest-paid U.S. executives, as GoPro shares soared after its initial public offering, boosting the value of his 2014 equity grant. His annual compensation since then included an $800,000 salary and $1.2 million target bonus.
Woodman’s 2014 pay totaled $287.2 million, according to the Bloomberg index, which values equity awards as of each company’s fiscal year-end. He didn’t get a bonus for 2015 and received a $300,000 payout in 2016. GoPro has yet to report executive-compensation figures for 2017.
GoPro has faced stiff competition from bigger and better funded tech rivals such as Samsung Electronics Co. and Alphabet’s (GOOGL) Google, which have begun selling similar products. The latest job cuts will reduce GoPro’s workforce to less than 1,000, down from about 1,500 at the end of 2016.