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That's what I plan to do after I have several millions in the bank and a house that's paid for like this guy.
Oh, he's only doing it until profits improve.
Let's see this from a manufacturing industry instead of finance, then I will be impressed.
I did this a few years back. Our company was facing some tough economic times due to one of our largest customers (my customer) losing contracts. We lost over 1/4 of our sales and I ended up with about 6 of my people sweeping floors on indirect. I was faced with the choice to send a few of my people home or take a temporary salary cut along with the rest of management to keep them there until we found new customers to pick up the slack.
Only one person in the company chose to send folks home (not the owners), and they were overruled because the majority voted. The cut lasted for quite some time. All bonuses were suspended (our bonuses were based on on-time deliveries and sales), and we all took an 10% salary cut.
It happens more than you think, but because it isn't a story bashing companies, it never gets publicity.
I did this a few years back. Our company was facing some tough economic times due to one of our largest customers (my customer) losing contracts. We lost over 1/4 of our sales and I ended up with about 6 of my people sweeping floors on indirect. I was faced with the choice to send a few of my people home or take a temporary salary cut along with the rest of management to keep them there until we found new customers to pick up the slack.
Only one person in the company chose to send folks home (not the owners), and they were overruled because the majority voted. The cut lasted for quite some time. All bonuses were suspended (our bonuses were based on on-time deliveries and sales), and we all took an 10% salary cut.
It happens more than you think, but because it isn't a story bashing companies, it never gets publicity.
My friend has a company and the whole company, including management, took a pay cut to refrain from layoffs. They are only just now starting to re-instate benefits.
Hey it really happens. And it sucks, but it sucks a lot less than going home at night and thinking about the people who came in and gave it 100% having to sit at home because management didn't want to make any sacrifices.
We did the same at a company I was working for. It was up to upper management to vote to either cut their staff or take pay cuts. We all took pay cuts. The CEO made the announcement and asked everyone to hang in there during our rough period, and while several people came up to thank me, one came up to ask, "Does that mean we won't be getting raises?????"
Even when someone forfeits his million dollar salary for a $70K salary, so the lowest paid can make $70K a year, it's met with scorn.
We live in a world of it's-just-not-enough and then we wonder why we're getting nothing.
Color me cynical ... I question the CEO's intent.
While it's certainly is good for the employees that are making less than $70k at his company, I'm wondering if it's just a publicity stunt. (Cameras were rolling at his company announcement?)
It -is- a temporary cut of his salary ... it only applies until the company reaches/returns to a particular profit level.
If he were so concerned about CEO salary inequity, how did his 120-employee company salary scale got to the point where he's making $1M while many others are making less than $70k?
He's has been nest-egging since 2004 so it's not so difficult to say he's temporarily giving up his $1M salary. His life isn't going to change one bit.
But, again, good for his employees!
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