Would you do the same job for less money? Dozens of America’s top executives would. According to Reuters, when the government slashed executive salaries at US companies that benefited from bailout funds, most stayed. Despite predictions that they’d leave for better money somewhere else, most of the executives stayed, earning pay at levels far below industry averages and much lower than they were used to. In fact 85 percent of the executives stayed with their companies.
Officials say they’ve told AIG, General Motors Co, GMAC Inc, Chrysler Group LLC and Chrysler Financial Corp to lower salaries for 2010 by one-third. However, companies like Bank of America and Citigroup have repaid the bailout money they received which means they’re not subject to as much regulation in salaries.
I have many friends who have experienced pay cuts, furloughs and loss of benefits in the past year. But I’ve also had other friends who have lost their jobs altogether. I don’t know of any friends who used reduced pay as a primary reason to leave their job, but it may have been a factor. I think deciding whether or not to stay when a company announces pay cuts largely depends on how the subject is approached. For companies who cut pay to certain employees, but not executives, it’s a bit harder to swallow. But for companies who announce cuts with positive attitude that lets everyone know all employees are in this together it may be more motivation to pitch in and turn the situation around. What do you think– would you do the same job for less money?