Dyson chief takes pay cut as recession squeezes profits

By DAILY MAIL REPORTER
Updated: 10:56 EST, 6 November 2009

Multi-millionaire inventor James Dyson took a huge salary cut last year as profits at his namesake firm were squeezed by the recession.

The technology tycoon, best known for inventing the bagless vacuum cleaner, took home just £457,000 in 2008, previously having pocketed a cool £12.5million in 2007. An additional £570,000 was paid into his pension.

During the period, pre-tax profits at the firm Dyson James slipped four per cent to £85.3million, a result of narrowing margins. Turnover rose 2.8 per cent to £628.3million.

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As part of a recession cost cutting exercise, the company has pruned expenditure on research by 6 per cent, however the bill for new product development still came in at £41.9million.

The most recent edition to the range of Dyson inventions is a desk fan, the shape of a magnifying glass, without external blades. This product will be aimed at businesses as a greener replacement for office air conditioning. 

Another relatively new product from the company, is the Airblade hand-dryer which expels air at a speed of 400 miles per hour through a small slit.

Sir James has been criticised for electing to use manufacturing facilities in China and Malaysia. However the newly crowned Conservative technology guru has said new products will be assembled and exported from the UK.