Top executives at Jabil, the largest company headquartered in St. Petersburg, will see smaller paychecks due to the impact of the Covid-19 pandemic.
Mark Mondello, CEO, and Mike Dastoor, chief financial officer, along with the company’s executive vice presidents, will reduce their base salaries by 25 percent beginning June 1 and continuing through Nov. 30, a filing with the U.S. Securities and Exchange Commission said. They also will forego any bonus otherwise due to them as part of Jabil’s short-term incentive program for the current fiscal year.
Members of Jabil’s board of directors also agreed to cut their annual retainers by 25 percent from June 1 through Nov. 30.
Jabil (NYSE: JBL), a manufacturing services company, saw its bottom line dip into the red in the second quarter of its fiscal year as a result of the pandemic. The company, which has significant operations in China, reported a net loss of $3.3 million on revenue of $6.125 billion. Jabil had $53 million in expenses directly associated with business interruption caused by coronavirus in Q2 2020. On a March 13 conference call with analysts, Mondello said he expected between $10 million and $20 million in business disruption costs in March and about the same for April.
For Mondello — one of the highest-paid CEOs at Tampa-St. Petersburg area companies — the pay cut could be substantial, based on his compensation package in 2019. His base salary last year was $1.215 million, and if it remained unchanged for this year, that would be reduced by $303,750.
His short-term cash incentive last year was $2.05 million, but he will forgo any short-term cash incentive this year. Mondello also received stock valued at about $8.1 million for a total pay package of $11.4 million.
Jabil board members received an annual cash retainer of $60,000 last year. A 25 percent reduction of that would be $15,000.
Separately, Jabil gave away thousands of surgical grade masks to first responders and others in the St. Petersburg community. More about that in this story in the St. Pete Catalyst Impact section.