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Executive compensation tends to be tied to bonuses and stock, not base salary. Taking a pay cut is much more minor than it may seem.
by nathanaldensr 6y ago
Executive compensation tends to be tied to bonuses and stock, not base salary. Taking a pay cut is much more minor than it may seem.
- creddit 6y agoYeah but cutting stock compensation doesn't really do much for you anyway since it's not real in the sense that it's not an operating expense; it's not cash. The equity is conjured up and pre-allocated meaning the cost to business is in the dilution at grant time. You could make an argument that either: A) The company should issue more equity to pay for furloughed/laid off workers B) The company should reallocate equity from executives to the furloughed workers. This may not be possible for a host of legal reasons, tbh, so I'm not sure it's actually possible.