Not too long ago, Nick Woodman was the highest-paid US executives with a total pay of $287.2 million taking him to the top spot in the Bloomberg Pay Index in 2014. However, on Monday, the GoPro CEO and founder announced that he would receive $1 in cash compensation in 2018. With the fall in company’s stock prices in last few years, Woodman’s fortunes also fell.
The company recently announced that it would reduce its global headcount by some 250 employees and exit the drone business. Shares of the company were halted in pre-market trading, before plummeting 26%. They have lost a fifth of their value in the last twelve months. “Despite significant marketing support, we found consumers were reluctant to purchase HERO5 Black at the same price it launched at one year earlier,” said Woodman in a statement, noting that sales rose after the company slashed the price of the camera on December 10.
A couple of years ago GoPro had become very popular among the adrenaline junkies but the craze has gone down, making it a product with niche appeal. It has struggled to sell its cameras and drones, and during the all-important holiday season was forced to slash the price on several of its devices, including HERO6 Black camera from $499 to $399 on January 7.
The company said that revenue will likely come in around $340 million during the fourth quarter, which is sharply lower than the $460 million to $480 million that it had previously forecast. The company believes that it will take another two quarters before it can start making any profit.
To ensure that comes to pass, GoPro is trimming more expenses in its pursuit of profitability, confirming plans to lay-off more employees and throw in the towel on its consumer drone business. GoPro said it will exit the business after it sells its remaining Karma drones.
However, the company restated its commitment to innovation and revealed the plans to introduce several new products in 2018 that are geared towards new and existing customers.
“If there were an opportunity for GoPro to partner up with a larger organization that could help us scale the company,” Woodman told Bloomberg Technology, “that’s certainly something that we would consider. But it’s not something that we’re actively engaged in at the moment.”