Career Chat

[ChrisoftheNorth]

Our CEO made the "sacrifice" of cutting his salary by 50% Wow so generous!

From 14M to 7M



He's making the sacrifice, so we can too. Uhhhh

I mean to be fair that’s a huge role and huge responsibility

It is...but 20% to someone who makes $50k is way more "sacrifice" than 50% of $14M...

[ChrisoftheNorth]

Our CEO made the "sacrifice" of cutting his salary by 50% Wow so generous!

From 14M to 7M



He's making the sacrifice, so we can too. Uhhhh

Ours took an 80% cut. We aren't public, so who knows how much he makes. They also said no bonuses to anyone, execs included, until everyone's paycuts are paid back, starting with individual contributors first. All in all, I think our CEO is doing an awesome job with all of this. I just think it's that I would volunteer to give up pay. As if $200/week or something is going to prevent layoffs, I'll take all I can while the getting is good, already operating on much less than I made pre COVID due to commissions. If I end up laid off, I end up laid off.

If they ask for furlough volunteers, I'll happily do that.

[D Griff]

I mean to be fair that’s a huge role and huge responsibility

It is...but 20% to someone who makes $50k is way more "sacrifice" than 50% of $14M...

If you're living "paycheck to paycheck" at $14M... you're just a fucking dumbass.

[ChrisoftheNorth]

It is...but 20% to someone who makes $50k is way more "sacrifice" than 50% of $14M...

If you're living "paycheck to paycheck" at $14M... you're just a fucking dumbass.

Exactly.

[max225]

I mean to be fair that’s a huge role and huge responsibility

It is...but 20% to someone who makes $50k is way more "sacrifice" than 50% of $14M...

Where do you draw the line @fair
50k
100k
500k ?

[max225]

It is...but 20% to someone who makes $50k is way more "sacrifice" than 50% of $14M...

If you're living "paycheck to paycheck" at $14M... you're just a fucking dumbass.

That’s how people living on minimum wage look at us

[D Griff]

If you're living "paycheck to paycheck" at $14M... you're just a fucking dumbass.

That’s how people living on minimum wage look at us

As they should... we also don't live paycheck to paycheck. I would be fine on 50% of my base salary for the rest of the year.

[D Griff]

It is...but 20% to someone who makes $50k is way more "sacrifice" than 50% of $14M...

Where do you draw the line @fair
50k
100k
500k ?

Our company did it really fair - it's like sub $75K - 0% reduction, $75K-90K - 10%, $90-120K - 15%, etc. or something similar. Then no salary cuts for sales since we likely won't be able to make any commission as we only get paid on growth over the prior year.

[D Griff]

It should be a good opp. for me to billionize in 2021

[max225]

Where do you draw the line @fair
50k
100k
500k ?

Our company did it really fair - it's like sub $75K - 0% reduction, $75K-90K - 10%, $90-120K - 15%, etc. or something similar. Then no salary cuts for sales since we likely won't be able to make any commission as we only get paid on growth over the prior year.

I dunno it’s an arbitrary % pulled out of thin air man

[ChrisoftheNorth]

It is...but 20% to someone who makes $50k is way more "sacrifice" than 50% of $14M...

Where do you draw the line @fair
50k
100k
500k ?

Fairness is more for optics and preserving morale. As an exec leader, this should be recognized.

People I work with seem to be just giving up. Everyone knows (or can look up) c-level salaries...and the general consensus is they're not sacrificing as much. I can't disagree, but I do disagree with people seeming to just throw in the towel.

The people I've talked to at GM say morale isn't too bad because they know they're going to get interest on their deferment...which makes the short term pain a bit more tolerable.

Like Dan's CEO cutting 80% and ruling out bonuses until paycuts are reversed...that helps boost morale because leadership is clearly showing sacrifice...or at least they set incentives in place to make sure things return to normal as quickly as possible.

The buzz around my company is that these cuts will be longer lasting than communicated...and they can keep inventing reasons to push off restoring pay cuts indefinitely.

[max225]

That’s how people living on minimum wage look at us

As they should... we also don't live paycheck to paycheck. I would be fine on 50% of my base salary for the rest of the year.

I would be fine for a long time should I get a higher %cut because it’s “fair” to those that chose different paths ?

[max225]

Where do you draw the line @fair
50k
100k
500k ?

Fairness is more for optics and preserving morale. As an exec leader, this should be recognized.

People I work with seem to be just giving up. Everyone knows (or can look up) c-level salaries...and the general consensus is they're not sacrificing as much. I can't disagree, but I do disagree with people seeming to just throw in the towel.

The people I've talked to at GM say morale isn't too bad because they know they're going to get interest on their deferment...which makes the short term pain a bit more tolerable.

Like Dan's CEO cutting 80% and ruling out bonuses until paycuts are reversed...that helps boost morale because leadership is clearly showing sacrifice...or at least they set incentives in place to make sure things return to normal as quickly as possible.

The buzz around my company is that these cuts will be longer lasting than communicated...and they can keep inventing reasons to push off restoring pay cuts indefinitely.

It really depends on what happens with car sales which st this point is a complete unknown

[ChrisoftheNorth]

Fairness is more for optics and preserving morale. As an exec leader, this should be recognized.

People I work with seem to be just giving up. Everyone knows (or can look up) c-level salaries...and the general consensus is they're not sacrificing as much. I can't disagree, but I do disagree with people seeming to just throw in the towel.

The people I've talked to at GM say morale isn't too bad because they know they're going to get interest on their deferment...which makes the short term pain a bit more tolerable.

Like Dan's CEO cutting 80% and ruling out bonuses until paycuts are reversed...that helps boost morale because leadership is clearly showing sacrifice...or at least they set incentives in place to make sure things return to normal as quickly as possible.

The buzz around my company is that these cuts will be longer lasting than communicated...and they can keep inventing reasons to push off restoring pay cuts indefinitely.

It really depends on what happens with car sales which st this point is a complete unknown

Unfortunately the way the car business works is if you're not producing, you're not making money. Period. Revenue is booked when a vehicle leaves the plant, not when it's delivered to a customer. So right now, all car companies are hemorrhaging cash keeping the companies afloat with $0 cashflow coming in. Clearly a difficult time.

But to keep people motivated, a DEEP cut to exec compensation could go a long way (and help the company's bottom line). They can just give themselves stock or something later to make up for it, but the drop in morale is tangible right now.

[max225]

It really depends on what happens with car sales which st this point is a complete unknown

Unfortunately the way the car business works is if you're not producing, you're not making money. Period. Revenue is booked when a vehicle leaves the plant, not when it's delivered to a customer. So right now, all car companies are hemorrhaging cash keeping the companies afloat with $0 cashflow coming in. Clearly a difficult time.

But to keep people motivated, a DEEP cut to exec compensation could go a long way (and help the company's bottom line). They can just give themselves stock or something later to make up for it, but the drop in morale is tangible right now.

You have a really similar structure as we do revenue is booked when we ship to a “Customer” which is say a Best Buy. Not Joe Schmoe.

They are all interrelated makes no sense to produce for 2 months and sit on that inventory later

[ChrisoftheNorth]

Unfortunately the way the car business works is if you're not producing, you're not making money. Period. Revenue is booked when a vehicle leaves the plant, not when it's delivered to a customer. So right now, all car companies are hemorrhaging cash keeping the companies afloat with $0 cashflow coming in. Clearly a difficult time.

But to keep people motivated, a DEEP cut to exec compensation could go a long way (and help the company's bottom line). They can just give themselves stock or something later to make up for it, but the drop in morale is tangible right now.

You have a really similar structure as we do revenue is booked when we ship to a “Customer” which is say a Best Buy. Not Joe Schmoe.

They are all interrelated makes no sense to produce for 2 months and sit on that inventory later

That's why this could end up being serious

[max225]

You have a really similar structure as we do revenue is booked when we ship to a “Customer” which is say a Best Buy. Not Joe Schmoe.

They are all interrelated makes no sense to produce for 2 months and sit on that inventory later

That's why this could end up being serious

It literally depends on if/when people go back to work... So many unknowns...

The bigger talk is around "AirBNB" super hosts around here... going under because they have 5-10-20 properties with mortgages ... Cardhouse... boom.

[D Griff]

Where do you draw the line @fair
50k
100k
500k ?

Fairness is more for optics and preserving morale. As an exec leader, this should be recognized.

People I work with seem to be just giving up. Everyone knows (or can look up) c-level salaries...and the general consensus is they're not sacrificing as much. I can't disagree, but I do disagree with people seeming to just throw in the towel.

The people I've talked to at GM say morale isn't too bad because they know they're going to get interest on their deferment...which makes the short term pain a bit more tolerable.

Like Dan's CEO cutting 80% and ruling out bonuses until paycuts are reversed...that helps boost morale because leadership is clearly showing sacrifice...or at least they set incentives in place to make sure things return to normal as quickly as possible.

The buzz around my company is that these cuts will be longer lasting than communicated...and they can keep inventing reasons to push off restoring pay cuts indefinitely.

The way it is communicated is hugely important. It also let's everyone know that at least if we go through the entire year with no "paybacks" the execs can't just give themselves huge bonuses (bonuses are a major/the main way they make the most money) and short the little guys.

[D Griff]

That's why this could end up being serious

It literally depends on if/when people go back to work... So many unknowns...

The bigger talk is around "AirBNB" super hosts around here... going under because they have 5-10-20 properties with mortgages ... Cardhouse... boom.

That's too bad for them... but it will probably help normalize real estate prices out there at least.

[D Griff]

As they should... we also don't live paycheck to paycheck. I would be fine on 50% of my base salary for the rest of the year.

I would be fine for a long time should I get a higher %cut because it’s “fair” to those that chose different paths ?

I think it is fair, yeah. You have more to give.

At the end of the day, companies HAVE to save money during this shit. One of the largest expenses is typically payroll, so everyone needs to sacrifice together to prevent more mass layoffs and stuff. It's not fun, but I'm much happier making 60% or what I was making last year than if I was stuck living off $350 or $700/week from .gov cheddar.

[Apex]

To hell with giving anything up. I’m asking for a promotion and a nice raise once I get this acquisition finished up.

[D Griff]

To hell with giving anything up. I’m asking for a promotion and a nice raise once I get this acquisition finished up.

Really depends where/what you do. I think my wife is going to ask for more $$$ but she is basically doing a director job now, I think it's deserved.

In my world, in sales in an industry that's heavily challenged by the 'VID'19... I'm lucky every day I'm not getting shit canned.

[Apex]

To hell with giving anything up. I’m asking for a promotion and a nice raise once I get this acquisition finished up.

Really depends where/what you do. I think my wife is going to ask for more $$$ but she is basically doing a director job now, I think it's deserved.

In my world, in sales in an industry that's heavily challenged by the 'VID'19... I'm lucky every day I'm not getting shit canned.

Yeah, this affects roles differently. Banking is an essential industry so yay me.
But I know they’re not going to fill the other Sr spot for the guy who’s retiring May 1, and the 2 positions above me are both vacant. I’m still not eligible for a promotion based on being here less than a year but carpe diem when this acquisition settles down in a week or two. Worst that happens is they say no.

[razr390]

The woman’s new ceo just took a 100% paycut and is asking everyone to contribute “how they can” her start date is 4/6

These are the goings-on at my place of employment ATM. They didn't include sales in the mandatory cuts they implemented last week as "making no commission is already a serious pay cut" (words of the CEO) and asked anyone who can to volunteer for larger cuts if we'd like...

I'm good, dog. I'm not here to be part of a family. I'm here for the money. I'm only willing to do this for so little

Not judging your response here but you sound like you did a complete 180 as opposed to when you were considering taking a cut and how well your CEO handles it.

You can still be a family about it. You’re in sales, obviously your commission is a decent cut. But it’s interesting to see you flip/flop on your mindset lol.

[goIftdibrad]

Unfortunately the way the car business works is if you're not producing, you're not making money. Period. Revenue is booked when a vehicle leaves the plant, not when it's delivered to a customer. So right now, all car companies are hemorrhaging cash keeping the companies afloat with $0 cashflow coming in. Clearly a difficult time.

But to keep people motivated, a DEEP cut to exec compensation could go a long way (and help the company's bottom line). They can just give themselves stock or something later to make up for it, but the drop in morale is tangible right now.

You have a really similar structure as we do revenue is booked when we ship to a “Customer” which is say a Best Buy. Not Joe Schmoe.

They are all interrelated makes no sense to produce for 2 months and sit on that inventory later

on large scales an long timelines that logic should work in a healthy environment as production should roughly equal demand. As always, the devil is in the details