8 CEOs who took a pay cut in 2013

Updated: Jun 06, 2014 7:30 PM UTC | Originally published: Apr 15, 2014
Photo: Craig Barritt\/Getty Images for AOL

AOL - Tim Armstrong

Armstrong took a massive pay cut in 2013, with his compensation falling by nearly half, from $12 million to $6.5 million. The pay reduction was due mostly to a one-time equity award worth $7.8 million that Armstrong received on top of a $500,000 bonus in 2012 following AOL's (aol) sale of a patent portfolio to Microsoft. There was no bonus for Armstrong this year, though he did get a $2.2 million cash incentive payment.

Photo: Aaron M. Sprecher\/Bloomberg\/Getty

Chevron - John Watson

Watson saw his compensation slashed by 9% to $20.2 million in 2013, which resulted from an 18% drop in his stock-based compensation, which totaled $5.8 million. His salary, meanwhile, inched up 6% to $1.8 million. In April, Watson received $15 million in performance shares and stock that Chevron (cvx) did not count as part of his 2013 compensation. The company said recently it plans to announce weaker-than-expected first-quarter results.

Dean Foods - Gregg Tanner

Tanner's pay dropped by a staggering 42% in 2013, to $3.7 million from $6.4 million the previous year. The "challenging" year Dean Foods (df) described in its annual proxy meant that senior executives didn't receive any short-term incentive pay tied to the company's performance. Customers' dwindling appetite for milk and the high cost of raw milk have socked Dean's stock; it tumbled 47% in 2013.

2014 AFP

Intel - Brian Krzanich

Krzanich's pay decreased to $9.1 million last year from the $15.7 million he earned in 2012 as the company's chief operating officer. The drop in pay -- due in part to a retention payment Krzanich received as COO -- came as Intel (intc) revamped its compensation policy by eliminating minimum performance-based equity awards for senior executives and requiring its 350 most senior execs to own company stock.

Daniel Acker \u00a9 2013 Bloomberg Finance LP

McDonald's - Don Thompson

Thompson's compensation shrunk by more than $4 million to $9.5 million in 2013, as the burger chain endured a tough year of slumping sales. The decline in Thompson's pay came mainly from a decrease in his non-equity incentive plan compensation, which dropped to $1.4 million in 2013 from $8.5 million in 2012 (Thompson took the reins as CEO of McDonald's (mcd) in June 2012). The company also cut his option awards to $1.8 million from $3.2 million the year before.

Jin Lee \u00a9 2012 Bloomberg Finance LP

Yum Brands - David Novak

Novak's pay package slipped 22% to $10 million last year from $12.8 million in 2012. The decline was attributed to a lower performance-based bonus: Novak received a $939,600 bonus in 2013, down from $4.6 million the year before. YUM (yum), parent of KFC, Taco Bell, and Pizza Hut, has been plagued by trouble in its China division, where competition has increased and sales have dragged due to a report that YUM's chicken suppliers used unapproved antibiotics.

Photo by Patrick T. Fallon \u00a9 2014 Bloomberg Finance LP

Twitter - Dick Costolo

Costolo's pay took a big tumble in 2013 even as his company raised $1.82 billion during its November 2013 IPO. He earned $130,250 last year, compared to $11.5 million the year prior. The bulk of his 2012 compensation came from stock awards. His 2013 pay was entirely salary-based; he received no bonus, stock award, or options. Costolo's low salary is typical of the tech world today, where other wealthy CEOs have reduced their pay to near zilch. His stake in Twitter (twtr), though, is worth upwards of $300 million.

David Ramos 2014 Getty Images

Facebook - Mark Zuckerberg

Zuckerberg earned $653,165 in 2013, an almost 70% reduction from his compensation of $1.9 million in 2012. His base salary was just $1 in 2013, and he recused himself from Facebook's (fb) bonus plan. The majority of what he earned last year came in the form of fees related to personal security and private flights.