The billionaire CEO of a hugely ambitious Chinese tech company has vowed to cut his annual salary to just 15 cents after acknowledging the business will be running low on cash.
The Beijing-based company, LeEco, operates across a dizzying range of industries — including movies, smartphones along with electric cars. In July, that will bought top U.S. electronics maker Vizio for $2 billion.
although that will appears to have bitten off more than that will can chew.
“No company has had such an experience of being caught in both ice along with fire,” CEO Jia Yueting wrote in a long, flowery memo to employees This particular week. “We blindly sped ahead, overextended our global strategy along with spent recklessly on expanding our business scale when our capital along with resources were in fact limited.”
Related: This particular ambitious Chinese tech firm just snapped up Vizio for $2 billion
Jia, who founded the company in 2002, apologized to shareholders, highlighting LeEco’s progress along with achievements as well as its financial along with organizational pressures.
“LeEco will quit the expansion strategy at the cost of burning money … along with instead focus on the existing market,” he wrote.
His admission of problems alarmed investors. Shares in LeEco’s two listed units that will Jia chairs — Coolpad Group ( along with Leshi Internet Information & Technology — fell sharply Monday on news of the memo. They recovered some of the losses Tuesday. )
Related: These smartphone makers are beating Apple in China
that will’s an embarrassing reversal of fortunes for Jia along with his company, which until very recently has flaunted its ambitions with big announcements along with flashy product launches.
This particular year alone, LeEco snapped up Vizio, unveiled a self-driving electric concept car, launched its smartphones in India along with opened its U.S. headquarters in Silicon Valley.
Jia said inside memo that will he burned more than 10 billion yuan ($1.4 million) of his own money inside company’s automobile division alone, although failed to raise outside funds.
LeEco paid Jia $88,500 last year, according to the company’s annual report. By taking an ax to his salary, he joins the ranks of top CEOs inside U.S. — like Facebook (‘s Mark Zuckerberg along with , Tech30)Tesla (‘s Elon Musk — who take home little or nothing for their day jobs. )
although like them, Jia carries a personal fortune on which to fall back on. Forbes recently listed him as China’s 37th richest person using a net worth of $4.2 billion.
along with he’s predicting better things to come for LeEco, ending his memo using a poem urging employees to look to “a brighter future after the storm.”
— Serenitie Wang along with Zhang Mengchen contributed to This particular report.
sy88pgw (Hong Kong) First published November 8, 2016: 4:13 AM ET