Why do companies typically choose to implement layoffs affecting numerous employees rather than considering salary reductions for top executives like the CEO?
In: Economics
As uppity as people will get reading this CEO’s Often do not make a salary that could possibly make a difference to anything.
Most of their wealth *usually* comes from benefits packages and preferred shares.
Bezos back when he was still CEO for example got paid 80k a year. Divided equally is a couple pennies per employee going to make a difference?
Of course he had wealth through other means, but personal finances are not company finances. Where would you draw the line? Expecting him to cover wages out of pocket would essentially be asking him to sell his company so that the company he no longer owns is better. What kind of incentive is that?
They have *wealth*. They don’t have actual cash to pay millions of paychecks bi weekly or something.
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