Benefits & Executive Compensation News

B&O Uses 2% of Revenue to Cover 2 Executives’ Severance Pay (1)

Jan. 15, 2020, 12:17 PM

Bang & Olufsen A/S just revealed the cost of dismissing its chief executive officer and the severance package represents a sizable chunk of the troubled stereo maker’s dwindling revenue.

B&O is paying a total of 15 million kroner ($2.2 million) to ex-CEO Henrik Clausen and to its former branding executive, John Mollanger, according to the company’s second-quarter earnings report. With sales flagging at the iconic maker of luxury audiovisual products, the cost represents more than 2% of B&O’s revenue in the quarter, and roughly half its free cash flow.

Henrik Clausen
Photographer: Fotograf Ole Mortensen/Bang & Olufsen A/S

Read more: Bang & Olufsen Extends Losses Amid Inventory...

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