Why do companies typically choose to implement layoffs affecting numerous employees rather than considering salary reductions for top executives like the CEO?
In: Economics
Because the CEO is the one making this decision so why would he decide to cut his own pay?
There also some logistical issues. As absurd as CEO salaries are, they tend to be a drop in the bucket in terms of a large corporations revenue. If you lay off 5,000 employees making 50,000 a year, that’s $250,000,000 in payroll.
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