Rovio proposes pay cuts for owner and chairman amid profit warnings

The board will meet on April 16th to discuss the changes

Rovio proposes pay cuts for owner and chairman amid profit warnings

Angry Birds developer Rovio has purposed cutting the pay of its chairman and vice chairman ahead of its first annual meeting on April 16th.

The proposal comes in response to a drop in the Finnish mobile game studio’s market value and will see Rovio’s primary owner and vice chairman Kaj Hed’s pay reduced from €10,000 ($12.4k) to €7,500 ($9.3k) per month while chairman Mika Ihamuotila’s pay will be cut down to €9,500 ($11,845) from €12,000 ($14.9k).

The salary of other board members would remain at €5,000 ($6.2k) per month.

Challenging times

The proposal follows on from Rovio's latest financial results which fell below shareholder and investor hopes despite setting a new company record for the second year in a row.

In 2017 Rovio saw its revenue increase 55 per cent to €297.2 million while operating profit rose to €31.4 million. The developer’s games revenue also increased by 55.9 per cent to €248 million.

Declines were mainly felt in Rovio’s licensing division with a decrease in Angry Birds movie merchandise.

Rovio had warned investors to brace for lower than expected profits as it expanded its business last February. The Finnish company expects group revenues to be €260m to €300m in 2018 while profits before interest and tax were anticipated at nine to 11 per cent.

As part of broader changes that followed the profit warning, Rovio closed its London office and the company's head of games Wilhelm Taht left his position with immediate effect due to “personal reasons”. He had been with the company for over three years and played a key role in the company's pivot to free-to-play.

Staff Writer

Iain is a freelance writer based in Scotland with a penchant for indies and all things Nintendo. Alongside PocketGamer.Biz, he has also appeared in Kotaku, Rock Paper Shotgun, PCGamesN and VG24/7.