I know of a company that did this, except it was a 1/3 salary cut. It was a cash flow problem where the company didn't want to take out of a loan for payroll. I

I know of a company that did this, except it was a 1/3 salary cut. It was a cash flow problem where the company didn't want to take out of a loan for payroll. I bet top employees would not leave right away, employees would quietly start planning for the escape, then you might see a mass exodus six months down the road.