ET 09:44

ASML Links Executive Pay to Employee Engagement After Survey Drop

IMP2.5
SNT-0.1▼
CONF80%
Operational

ASML CEO Christophe Fouquet will tie senior leadership compensation, including his own, to a new Workplace Experience Index, following a decline in the company's employee engagement score to 73.5% this year from 78% in the prior year. In a memo to staff, Fouquet said the index—built from six survey questions covering trust in leadership, psychological safety and role clarity—will directly influence remuneration for ASML's Board of Management in the coming years. The memo did not specify the weighting or start date. More than 38,000 of ASML's roughly 44,000 employees participated in the annual survey. The move follows a turbulent year for the Dutch chip-equipment maker, the sole supplier of EUV lithography machines. ASML posted a record net profit of €9.6 billion in 2025 but announced plans in January to cut about 1,700 positions, roughly 3.8% of its workforce. A social plan agreed with four unions bars compulsory layoffs until May 1, 2027. Tying executive pay to employee sentiment is uncommon; IBM and Aviva have previously used similar engagement targets.

ByTicklex Editorial