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Why don't company execs take a paycut instead of lying off employees?

Oct 27, 2017
1,015
#1
Always wondered this. They can actually afford to take a paycut or just don't get a 5 mil bonus that year to keep the company going and live pretty well. Why layoff people who need the money much more? Greed, Comfort of life, evil, apathy of life?
 
Oct 26, 2017
2,086
#12
Because most of the CEO’s aren’t married to where they work and could just go on to work somewhere willing to pay them a better rate. They’ll never get any blame for their salary because it’s accepted and normal so none are willing to work for less.

I remember Iwata lowering his own pay but that’s a very rare situation.
 
Oct 26, 2017
6,640
#13
They do sometimes. Iwata famously did following the relative failure of the 3DS early on.

"The deduction of the fixed compensation is what we volunteered to do in order to show our sincere attitude and to fulfill our responsibility"
 
Dec 12, 2018
459
UK
#19
Greed, and they lack compassion and empathy; they see employees as disposable tools to further their goals and success, rather than as human beings just trying to get by.
 
Oct 25, 2017
1,856
Germany
#24
Greed.
They want to make money no matter how good or shitty the company is running.
Getting a fat bonuse for getting hired, one for doing your job and one to get out of it.

Why should they care about the people creating their products?
Most of them came from outside and have no fucking idea how the company works
 
Oct 27, 2017
14,251
#25
These people can never have enough money. They have so much money that they can't even spend it in 10 lifetimes but they MUST HAVE MORE.

Its disgusting.
 
Oct 25, 2017
22,351
#27
a) Because they don't want to make less money but also
b) Because layoffs are often legitimately inevitable. If you lose a contract (like say, Bungie ditching Activision), anyone who was primarily working on that contract in-house is probably going to be let go because they're no longer needed. Same thing with declining sales.
 
Oct 28, 2017
4,647
#30
a) Because they don't want to make less money but also
b) Because layoffs are often legitimately inevitable. If you lose a contract (like say, Bungie ditching Activision), anyone who was primarily working on that contract in-house is probably going to be let go because they're no longer needed. Same thing with declining sales.
that is true and all, but at the end, everything is the executives fault, they make the calls in the company.

in Iwata's case, it is not fault of the developers, and the lower level eployees that Iwata thought the 3DS would be a mega hit.
 

guek

Banned
Member
Oct 25, 2017
3,177
#31
Lol why do CEOs get paid millions in severance when they drive companies completely underwater? Because they can get away with it. Same here.
 
Oct 27, 2017
4,824
#33
Because if the executives isn't named Iwata, they really only care about two things: Themselves and the amount of money they can stuff into their pockets.
 
Nov 3, 2017
134
#35
They have bills to pay too. Would you take a pay cut because some people under you fucked shit up?
Even when you are super rich this mentality still exists. Except now they can't make payments on their 3rd yacht instead of, you know, not being able to make a car payment or pay medical bills.
 
Apr 4, 2018
8,010
#36
Because for 95% of CEOs the point of being the boss isn’t to see the company succeed it’s to enrich themselves by any means possible.
 
Nov 13, 2017
4,885
#37
If we're talking a publicly traded company, I think there's another factor involved, and that's how to convince investors that you're turning a corner. Cutting your own salary and keeping the same workforce isn't going to do the trick. Also not to be underestimated is that some of these CEOs have a lot of their compensation tied up in stock, so you can't just have Bezos sell a crapload of stock to pay his employees, that's going to cause somewhat of a panic.

It's similar to what happens when new management comes aboard. They rarely if ever just keep things the same, because otherwise what was the point of hiring them?
 
OP
OP
Youngfossil
Oct 27, 2017
1,015
#39
They have bills to pay too. Would you take a pay cut because some people under you fucked shit up?
Even when you are super rich this mentality still exists. Except now they can't make payments on their 3rd yacht instead of, you know, not being able to make a car payment or pay medical bills.
Technically they fucked up... they are the execs lol
 
Oct 28, 2017
4,647
#42
They have bills to pay too. Would you take a pay cut because some people under you fucked shit up?
.
unless "someone fucked up" is a employee burning down a whole warehouse or something. i dont think the "fuck up" of someone on a low level can affect the whole company.

everybody is just following the execs orders.
 
Oct 27, 2017
2,072
#44
Union Pacific has hit pretty much record quarters for revenue and profit and has met this excellent news by laying off 1400 workers...It makes no sense to me that workers allow this stuff to happen.
 
Oct 27, 2017
674
#48
Greed and optics

A lot of these people answer to shareholders and such. Cutting your own salary to compensate for the shortcomings of the company as a whole looks weak in a strong capitalistic society like America