GoTo CEO Clarifies Issue about Jumbo Salary of Employees
TEMPO.CO, Jakarta - Indonesia's Tech Giant PT GoTo Gojek Tokopedia or GoTo has spoken up about issues related to the high management burden on employees’ salaries when compared to similar entities. GoTo CEO Andre Sulistyo confirmed that the wage paid by the company is on par with other companies.
“If we only look at the cash component, GoTo management's salary is on par with similar companies,” said Andre in a written statement on Wednesday, December 14, 2022.
The total GoTo management’s salary expense for the last nine months amounted to Rp22.9 billion, while the payroll expense for the transportation company was at Rp23.9 billion; FMCG companies at Rp61.1 billion; and State-Owned Banks at Rp199.4 billion. The data referred to the public company's 3Q22 financial report and internal research of GoTo.
When comparing GoTo's total net revenue expense with similar companies, according to Andre, the numbers were still similar according to the same source. GoTo management's total net revenue expense reached Rp8 trillion, while other technology companies at Rp2.6 trillion, transportation companies at Rp2.5 trillion, FMCG companies at Rp31.5 trillion, and state-owned banks at Rp115.3 billion.
Andre also said that currently, the management did not receive bonuses, profit sharing, or other compensations based on the company’s profits like in other companies. “Although some management also owns company shares, no dividends are distributed, like other company shareholders,” he claimed.
He assessed that the salaries of GoTo employees were competitively designed. “Competitive salary and benefits are important factors in recruiting and retaining professional management with a world-class experience,” he said.
Last November, the merger of ride-hailing provider Gojek and e-commerce firm Tokopedia decided to cut 1,300 workers or about 12% percent of its total employees in Indonesia, Vietnam, Singapore, and India in a bid to encourage the company's financial independence.
RIANI SANUSI PUTRI
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