Zoom CEO Eric Yuan takes 98% salary-cut: Check his net-worth
Zoom has announced its decision to axe 15% of its workforce or about 1,300 jobs, amid global economic uncertainties. The company's founder and CEO Eric Yuan said he would also take a 98% pay cut for the upcoming fiscal year. Let's trace Yuan's story, his journey in making Zoom a billion-dollar venture, and how his salary will be affected.
Why does this story matter?
The season of layoffs that began in 2022 is continuing into 2023 as well. The rising economic uncertainties amid fears of recession have compelled firms to cut down on their workforces. The companies are facing the brunt of the hiring spree that took place during the pandemic, and Zoom is the latest tech company to join the group.
With the pay cut, Yuan's salary will be nearly $6,000
Yun said he will take a 98% pay cut this year and will forego his corporate bonus as well. The salaries of the members of the executive leadership team will also be reduced by 20% According to Bloomberg, Yuan's base salary in 2021 was $301,731, while his overall compensation was $1.1 million. Yuan's pay will drop to roughly $6,035 for the entire 2023.
Yuan's net worth hit $24 billion in October 2020
Zoom witnessed immense growth during the COVID-19 pandemic. In March 2020, the app downloads increased by 700%, according to Forbes. The same year the company reported more than 300 million daily meeting participants, way more than the 10 million it recorded at the end of 2019. In October 2020, Yuan's net worth rose as high as $24 billion.
Yuan's current net worth is around $4 billion
Yuan's net worth soared from $5.5 billion in 2020 to $14.9 billion in 2021. In 2022, his worth dipped to $5.2 billion and currently stands at $4.1 billion, according to Forbes. He ranked 285 on the 'Forbes 400' list and 523 on the list of billionaires, in 2022. In 2020, he was featured 43rd in the 'Forbes 400' list.
The interesting story that led to the creation of Zoom
Yuan founded Zoom in 2011, before which he worked as an engineer at Cisco's WebEx for over a decade. Before he could move from China to the U.S. in the 1990s, his visa was rejected eight times. According to Caltech blog, the 10-hour-long train trip "required to visit his now-wife inspired Yuan to focus on videoconferencing technology" and he eventually created Zoom.
Yuan married at the age of 22 while pursuing masters
Yuan was born to mining engineers in China's eastern Shandong Province. He holds a master's degree in Engineering Management from the China University of Mining and Technology and completed his bachelor's from the Shandong Institute of Business and Technology. He got married at the age of 22 while pursuing his master's. He currently resides in Santa Clara, California, and has three children.
