ASML's CEO faces a high-stakes test: Christophe Fouquet bets his pay on happier workers after a major corporate shake-up
ASML CEO Christophe Fouquet is tying executive pay to employee happiness as the Dutch chipmaking giant tries to lift staff morale after a major shake-up. The move means how employees feel about their jobs will now play a role in determining how much the company's top executives get paid.
In a memo to employees, reported by Business Insider, Fouquet said ASML would make staff feedback a factor in deciding bonuses and other long-term rewards for its top executives. Acknowledging that the past year had been difficult and emotionally draining for employees, he said improving the workplace and rebuilding the company's culture would be a personal priority.
ASML's annual employee survey, which received responses from more than 38,000 of its approximately 44,000 employees, showed that its engagement index fell to 73.5 per cent from 78 per cent a year earlier.
ASML's executive team selected six questions from the survey to create a new Workplace Experience Index, which will influence executive remuneration in the coming years.
The survey will look at whether employees feel safe speaking their minds, trust the company's leaders, know what is expected of them and feel their teams work well together. It will also ask whether employees believe their managers care about them as people, not just as workers.
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The compensation change comes as ASML attempts to simplify its organisational structure, reduce bureaucracy and focus more resources on engineering.
In January, Dutch chip giant announced plans that could involve cutting 1,700 jobs to reduce management layers and improve operational efficiency.
Documents previously reported by Business Insider indicated that the restructuring had focused on reducing the number of managers. ASML later said it expected fewer job cuts than initially planned.
The restructuring has brought changes to jobs, managers and responsibilities, leaving employees adjusting to a new way of working. The drop in staff satisfaction suggests the changes may be taking a toll on morale.
ASML has not said how much of its executives’ pay will depend on employee feedback or how the new measure will affect their bonuses.
It is unusual for companies to tie executives’ pay to how happy their employees are, although IBM and Aviva have taken similar steps in the past.
ASML’s move comes at a time when many technology companies are cutting jobs, trimming management teams and expecting employees to do more with less.
Meta has been a prominent example. The company launched a series of layoffs in 2023 under chief executive Mark Zuckerberg's 'year of efficiency' initiative and subsequently cut employees it described as low performers.
Meta chief technology officer Andrew Bosworth has also urged employees who disagree with the company's direction to consider working elsewhere. Executives have since acknowledged internally that the efficiency drive went too far in some respects, with Bosworth telling staff that morale was approaching one of its lowest points.
ASML will now judge its top executives not just by business results, but also by how employees feel about working there. Whether the move improves morale will depend on whether the company acts on workers’ concerns and makes real changes to their daily working lives.
The initiative comes as ASML prepares to meet growing demand for its specialised chipmaking equipment.
The company is the only manufacturer capable of producing extreme ultraviolet lithography systems, known as EUV machines, which are essential for manufacturing the most advanced semiconductors. Its customers include major chipmakers such as Taiwan Semiconductor Manufacturing Company and Intel.
As companies race to build AI systems, demand for the chips that power them is surging. Days before Fouquet's memo, ASML raised its sales forecast for 2026 and said it would speed up production. The company's shares had climbed 45 per cent this year, according to Business Insider.
Elon Musk is also pursuing plans for a large semiconductor manufacturing facility in Texas called Terafab, a joint project involving Tesla and SpaceX. Business Insider previously reported that Musk delivered a virtual presentation to a private ASML employee conference in June to promote the project.
Sayantani Biswas is an assistant editor at Livemint with seven years of experience covering geopolitics, foreign policy, international relations and global power dynamics. She reports on Indian and international politics, including elections worldwide, and specialises in historically grounded analysis of contemporary conflicts and state decisions. She joined Mint in 2021, after covering politics at publications including The Telegraph. <br> She holds an MPhil in Comparative Literature from Jadavpur University (2019), with a specialisation in postcolonial Latin American literature. Her research examined economic nationalism through Eduardo Galeano’s Open Veins of Latin America. She also writes on political language, cultural memory and the long shadows of conflict. <br> Biswas grew up in Durgapur, an industrial town in West Bengal shaped by migration, which drew families from across India to the Durgapur Steel Plant. As the only child in a joint family, she spent years listening—almost obsessively—to her grandparents’ testimonies of struggle, fear and loss as they fled Bangladesh during the Partition of 1947. This formative exposure to lived historical memory later converged with her training in Comparative Literature, equipping her to analyse socio-economic structures and their reverberations. <br> Outside the newsroom, she gravitates towards cultural history and critical theory, returning often to texts such as Paulo Freire’s Pedagogy of the Oppressed. As a journalist, she is committed to accuracy, intellectual rigour and fairness, and believes political reporting demands not only clarity and speed, but historical depth, contextual precision, and a disciplined resistance to spectacle.
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