Why do companies typically choose to implement layoffs affecting numerous employees rather than considering salary reductions for top executives like the CEO?
In: Economics
You’re the CEO, you ask your underling to come up with a way to save the company $2.5 million this year. What do you think the underling is going to do? Tell you to take a pay cut from your $25 million dollar a year pay or suggest that all divisions can cut their wage costs by 10% through early retirement and redundancies? Its fairly simple to work that one out.
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