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ASML plans to tie executive pay to employee experience

An internal memo outlines ASML's plan to link long-term executive incentives to a new employee work-experience index after restructuring stirred discontent. More than 38,000 employees answered the annual survey, with engagement dropping from 78% to 73.5%. The index, drawn from six survey questions, will apply to management board members and assess issues such as trust in senior leaders and whether employees can speak up without fearing retaliation.

Source published: Brief prepared:

What to know

  • 01

    The index also examines role clarity, team efficiency, organizational arrangements and whether direct managers care about employees.

  • 02

    ASML's restructuring aims to reduce management layers. The company initially outlined possible cuts of 1,700 jobs, but later said it expected fewer layoffs.

Why it matters

The proposed arrangement connects employee views of the workplace with executive incentives as part of ASML's response to internal discontent during its reorganization.

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