Although the Container Store is facing some real retail challenges, some employees can still expect a raise this year, thanks to the company's CEO.
Satish Malhotra has voluntarily decreased his salary by 10% to help cover the costs of pay hikes for others at the company. In a filing with the Securities and Exchange Commission, Malhortra said his annual salary would drop from $925,000 to $832,500 for a six-month period.
Malhotra's compensation total was $2.57 million last year.
The average increase would not be made clear, but it did not appear to be an average increase for employees.
In its most recent quarter-end results, the Container Store reported an adjusted net loss of $10.1 million, more than $20 million worse than the same period a year ago. In May, it announced a series of layoffs that affected about 15 percent of its support center workers and 3% of its employees at its distribution centers and stores. The cuts were not disclosed and the number of people affected was not revealed.
Malhotra signed a letter from the company's chief legal officer saying that he did not view the salary reduction as a breach of his contract and that he was waiving his right to leave for 'good reason' because of the temporary pay cut. If he had chosen to do so, he would have been eligible for severance benefits that included twice his base salary.
The note said that the company does not have any plans to begin a search for a new leader.