Inventor Dyson takes massive pay cut

Nov 7 2009 by Iain Laing, The Journal

VACUUM cleaner mogul Sir James Dyson saw his salary slashed last year as profits slid at his technology firm when the recession took its toll on the firm.

The multi-millionaire inventor’s £457,000 pay packet for 2008 pales in comparison with the £12.5m he took for the previous year, according to the company’s annual report.

Sir James, who became a household name after launching his bagless vacuum, took the steep pay cut as pre-tax profits at his company fell 4% to £85.3m in the 12 months to December 31, although turnover grew 2.8% to £628m in the period, while research and development spending was 6% lower at £49m.

But Sir James, who has been named as the Conservatives’ technology tsar, said research was the firm’s life blood and would continue.

During the year the firm launched a new vacuum that steers on a ball instead of wheels.

The firm said it became the UK’s best-selling vacuum within a month. It also created the Air Multiplier fan which operates without blades or a grille.

“By investing in long-term research and development, we’ve been able to keep launching new technologies,” Sir James said.

The firm, which said it had boosted the number of engineers it employs globally to 500, plans to continue expanding into new markets including South America.