Philips' management will not receive any bonuses for 2022 as the company's market value dipped by 70 percent after a global recall of respiratory devices.
"2022 was a very disappointing year for Philips and its stakeholders, and we are taking firm action to strengthen patient safety and quality, improve our execution and step up performance with urgency in 2023," said Roy Jakobs, CEO of Royal Philips in its recent annual report.
According to the report, the current management board is waiving any 2022 annual incentive payouts as it has received negative ratings from shareholders and other stakeholders.
The company also said it is working to complete the Respironics recall and testing program in 2023, as well as work on building back its relationships with the FDA and DOJ.
This comes as the company announced layoffs in October and January where it reduced its workforce by 4,000 employees.