It will never happen but ... if everyone on the BOD and in the C-Suite reduced their salaries to $250,000 with no bonuses, stock options, etc., how many jobs would be saved?
Someone should ask that in a Town Hall when they know they are leaving the company anyway.
18 replies (most recent on top)
Should be outsourced to India. Big cost savings.
big thanks to the finance group for the estimates. I would trade Stankey for 500 productive employees. not like he knows how to do anything technical. what does Legg make? trade them all in and move up the next level.
the 12 or 13 att execs that get to fly those nice private jets could fly business class and save a buck.
“ We are laying off unneeded workers, not hiring unneeded workers.”
My team has had 4 people leave this year. They were not laid off. We have already taken on a ton of additional responsibilities and are drowning. Guess what, they aren’t backfilling either. It’s now a race out the door for other internal teams or in my case external. Yeah I’m done.
This never works because the math is bad. Reducing pay for the C suite means you just end up with even worse managers in the jobs. Also you would be surprised at how few jobs $10 million will actually save. We need to fire the incompetent executives pushing RTO and replace them with better candidates or eliminate their jobs altogether. That is the only way to turn this mess around.
DIscontinue the Diamond Club conventions. Too much $$$. The travel, resorts, speakers, way tooooo much $$$ spent. A couple years ago they had Imagine Dragons play. That cost a pretty penny.
This year was Scottsdale, AZ.
“If you were actually working and producing, your job wouldn't need saving.”
Unless you happen to be geo-located in the wrong location, at which point it doesn’t matter how well you perform you’re gonna get cut unless you move.
If you were actually working and producing, your job wouldn't need saving.
Cut the C-suite salary. Don't hire any more workers because it's a business, not a handout. Win-win.
I’m bored, so I went ahead and took this to the next level since it’s kinda ridiculous.
This data is available on MorningStar:
https://www.morningstar.com/stocks/xnys/t/executive
Anyways,
Going off the data here, TC for ‘Key Executives’ is 73,168,676 and has gone up the past few years despite poor company performance overall.
If we take this, and the BOD: the BOD total TC is - 4,364,598
This is a grand total of: $77,533,274
For ~20 employees give or take.
Now, if we perform the same calculation we did below, let’s give half of them $500k and the other half $250k since some actually have a TC of < $500k (believe it or not) assuming 20 we have a new value of $7.5M which is ~10% of the former value.
Great.
$77,533,274 - $7.5M = $70,033,274
How many employees lives can we spare for that much money?
$70,033,274 / $150k = 467 approx.
Assuming a +/- of 15%
397 - 537 (bit of a range, but I’d wager it’s on the upper bound)
397 - 537 employees can be spared if we cut executive salaries down.
Is it a ton? No, but it would make a difference.
Would it save the thousands they’ve been cutting? No but it would save some.
But unfortunately this is also the calculation share-holders make, they’re willing to let 500 of you lose your jobs to keep some overpaid undereducated mouth piece CEO stay in charge to ensure a stable share-price in the short term even if it is a detriment to the share price long term, which is why CEO’s are so over-compensated.
We are laying off unneeded workers, not hiring unneeded workers.
That'll show them! D-mb post.
This is an easy estimate to make.
Stankey pulls about $29M a year TC (total compensation).
If we cut him back to even just $500k a year - a respectable salary for anyone who isn’t Stankey - you have $28.5M in hypothetical savings.
If we assume each employee saved makes ~$100k a year and let’s just be VERY conservative and say that position costs the company $150k a year all in (benefits, bonus, etc) you just need to divide ‘saved Stankey cash’ by ‘employee cost’
$28.5M / $150k = 190 employees.
By cutting out Stankey salary you could keep ~190 employees. Assuming deviations based off some employees making more or less than others we can probably say this value will vary +/- 15%
So 160 - 220 employees.
Do the math… sadly it wouldn’t save that many jobs in the grand scheme of things.
Just because Artificial Intelligence could analyze our current business model, operational results, predict subscriber growth trends and recommend sound business strategies going forward doesn’t mean we should give the clueless leadership a pay cut. No… they should be fired!!! We can call our Algorithm “5tAnk3y 5uX”!
Are you referring to the suits that have taken part in the destruction and dismantling of
a once very profitable and successful corporation? Yeah right. Greed rules those cowboys.
Jobs would be saved if the workers were needed. We don't want workers if there isn't work for them to do.
"Someone should ask that in a Town Hall when they know they are leaving the company anyway."
Grow a pair and ask yourself.