Singapore billionaire Forrest Li to forgo salary as tech unicorn Sea’s CEO to cut costs
- Sea Ltd.’s top management will forgo their salaries, as the Singapore gaming and e-commerce giant tries to shield itself from the economic slowdown
- Company lost about US$170 billion of market value since an October high on questions about its moneymaking prospects and global decline in tech stocks
“The leadership team has decided that we will not take any cash compensation until the company reaches self-sufficiency,” Chief Executive Officer Forrest Li said in an internal memo sent to staff on Thursday, days after Sea shut down operations in some markets and trimmed staff across its divisions. “We can now see that this is not a quickly passing storm: these negative conditions is likely to persist into the medium term.”
“With investors fleeing for ‘safe haven’ investments, we do not anticipate being able to raise funds in the market,” Li said, reiterating that the company’s primary objective for the next 12 to 18 months is to achieve positive cash flow as soon as possible.
The company will cap business travel to economy class flight fares, with travel meal expenses limited to US$30 a day. It will also curb spending on hotel stays for business trips to US$150 a night, and cull reimbursement for meals and entertainment bills.
“The only way for us to free ourselves from relying on external capital is to become self-sufficient, generating enough cash for all our own needs and projects,” Li said.
Sea is facing increasing pressure to simultaneously grow and control costs. Consumers are pulling back on spending online as rising interest rates and prices weigh on the economy, while investors are becoming less willing to bankroll growth without profits.
