It irritates me when the senior leaders at Chevron talk about how difficult it is for them to reduce headcount and deliver the hard messages and yet we all know that they will be keeping their own jobs. Enhanced severance is nice and all but why couldn’t those senior leaders take a pay cut rather than reduce headcount. A pay cut for the CEO and his direct reports would be equivalent to at least several lower level psgs and it isn’t likely that they would even miss the $. It is frustrating to know that the majority of those who will be let go will be the lower psgs. The only high level psgs who will go are those who choose to retire (and should have left years ago)
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Senior leaders are getting less cash bonus and less valauble stock options. Many stock options granted over last 4 years are WORTHLESS. Base pay has not YET dropped.
In my career, I've never seen a pay cut for management or the staff. Salary freezes , yes. I'm certain that the reduced current value of Executive comp packages (options, warrants, et. al.) is way down but will bounce before expiration.
I've witnessed demotions where we protected the employees salary (PIJ)
Anyone ever remember pay cuts?
Chevron is not a charity organization. No sense keep all the people if there will not be enough activities. Cutting management salary will not answer the need. If the business only require 30,000 people to be productive, having 3,500 people will only make it worse. Right now, there are too many cooks in the kitchen and I am tired of listening to the command. Everyone wants to be a decision makers but there’s only handful of people that do the dirty work. So cutting management salary to keep some more people around doesn’t necessarily mean it is a good thing.
Take a look at the recent salary increases each received. You will be shocked.