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GoPro CEO sees salary slashed to $1 after dire 2017

Tim Bradshaw
Nick Woodman, CEO, GoPro
Mark Neuling | CNBC

GoPro founder Nick Woodman was the highest paid chief executive in the US in 2014, after receiving a bundle of stock worth $285 million when the action-camera maker he founded went public.

This year, he will receive no more than $1, after GoPro's board slashed his salary and stripped him of his bonuses.

GoPro's annual report, released on Thursday, revealed that Mr Woodman missed out entirely on a potential $1.2 million bonus for 2017, after a disastrous year that saw lower-than-expected holiday sales, job cuts and its withdrawal from the fast-growing camera drone market.

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Revenues were flat in 2017 overall at $1.18 billion but sales in the critical December quarter fell by 38 percent, GoPro reported in February. Net losses for the year jumped by 56 percent to $182.9 million.

GoPro's board said in Thursday's proxy filing: "Based on its review of our overall corporate performance, and assessment of our Chief Executive Officer's individual performance in relation to our business results and financial challenges for 2017, the compensation and leadership committee did not feel overall performance goals were met and did not approve a bonus payment for Mr. Woodman."

GoPro agreed a new pay deal with Mr. Woodman in January that saw him receive a "nominal salary of $1 and no target 2018 cash bonus" for this year.

Mr. Woodman received no further equity awards for last year, the proxy filing added, "based on 2016 performance results and the belief that as our founder and majority stockholder, Mr. Woodman's interests continue to be well aligned with those of our stockholders".

GoPro hired bankers in January to explore a sale of the company and is cutting more than 20 percent of its headcount in a bid to reduce costs.

Once a "unicorn", a private tech company valued at more than $1 billion, GoPro is now valued on the public markets at $712 million. Its shares have fallen by more than a third so far this year and were trading flat at $4.86 on Thursday.

More from the Financial Times:
GoPro pins turnround on action camera and VR
GoPro hires bankers to consider sale after new revenue miss
GoPro crashes to new record low as trading resumes

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