ASML’s CEO is putting his paycheck on the line for employee morale. It could help retain talent that’s nearly impossible to replace

ASML's CEO Christophe Fouquet is linking his own paycheck to employee morale by creating a new Workplace Experience Index for senior leaders, including himself. This move comes after ASML's annual employee survey found engagement dropped to 73.5% this year from 78% in 2025. The index, built from six survey questions, aims to influence the remuneration of senior leaders, directly impacting their compensation.

This strategy is rare but not unprecedented, as companies like IBM and Aviva have also incorporated employee engagement into their executive pay targets. Despite facing a tumultuous year due to restructuring and cuts, ASML, the world's only supplier of extreme ultraviolet (EUV) lithography machines, benefits significantly from the AI boom, posting record profits.

However, ASML had to cut about 1,700 positions, mostly management roles, to streamline operations. Dutch unions opposed the layoffs, but a social plan was agreed upon. The CEO believes that prioritizing employee satisfaction is crucial for ASML, as the company faces high turnover and the difficulty of replacing specialized talent.