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

Youngfossil

Member
Oct 27, 2017
2,072
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?
 

Driggonny

Member
Oct 26, 2017
2,133
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.
 

LewieP

Member
Oct 26, 2017
9,700
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"
 

MrCibb

Member
Dec 12, 2018
1,135
UK
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.
 

Mazzle

Member
Oct 25, 2017
2,228
Germany
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
 

BWoog

Member
Oct 27, 2017
17,177
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.
 

Kirblar

Member
Oct 25, 2017
28,547
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.
 

Gustaf

Banned
Oct 28, 2017
7,644
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
Oct 25, 2017
3,177
Lol why do CEOs get paid millions in severance when they drive companies completely underwater? Because they can get away with it. Same here.
 

mas8705

Member
Oct 27, 2017
5,127
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.
 

super-famicom

Avenger
Oct 26, 2017
4,353
Because they need the money to build their bomb shelters to prepare for the apocalypse they will directly be responsible for.
 

HaL64

Member
Nov 3, 2017
262
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.
 

VectorPrime

Banned
Apr 4, 2018
11,779
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.
 

mrmoose

Member
Nov 13, 2017
8,382
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?
 

Shodan14

Member
Oct 30, 2017
4,218
It would be symbolic at best in terms of saving on costs. Still a nice thing to do though.
 
OP
OP
Youngfossil

Youngfossil

Member
Oct 27, 2017
2,072
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
 

Gustaf

Banned
Oct 28, 2017
7,644
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.
 

AlteredBeast

Member
Oct 27, 2017
2,476
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
1,064
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