Daniel Ricciardo will have his salary slashed in half when he moves from Renault to McLaren at the end of the 2020 season.
Earlier this month the Aussie surprised many when McLaren announced that he was taking Carlos Sainz’s soon-to-be-vacant seat. The Spaniard is moving to Ferrari to replace Sebastian Vettel.
While some pundits have questioned Ricciardo’s decision, billing it as a lateral move, Renault managing director Cyril Abiteboul says he feels the driver was “rushed” into a quick decision by McLaren.
But however it came about, the one thing it does come with a smaller pay cheque.
According to veteran French journalist Marc Limacher, Ricciardo will be earning half of what Renault paid him when he heads to Woking.
For 2019 and 2020, Ricciardo drew a 25-million euros salary while at McLaren will only be bagging 10 million per season.
That’s a 60 percent cut.
It does, however, come with incentives.
The former Red Bull driver will get a bonus of 400,000 euros every time he bags a top-three showing while a race win comes with a nice 1 million euro payout.
Reports of Ricciardo’s reduced wages comes after news that McLaren will be making 1,200 staff redundant in order to cut costs.
While the majority is expected to come from the company’s automotive section, the Formula 1 team will also face loses.
“We deeply regret the impact that this restructure will have on all our people, but especially those whose jobs may be affected,” Paul Walsh, executive chairman of the McLaren Group, said.
“It is a course of action we have worked hard to avoid, having already undertaken dramatic cost-saving measures across all areas of the business. But we now have no other choice but to reduce the size of our workforce.”
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