Heroes of the economy: Paycuts prevented layoffs

[Liberal_in_LA]

Rob Katz

Heroic act: Cut his salary to $0
Result: Layoffs were mostly avoided

Earlier this year Rob Katz cut his $840,000 a year CEO salary down to $0 for 2009. He knew that things could get tough during the recession for a resort destination such as Vail Resorts, which has five ski and snowboard slopes in Colorado and Nevada.

Then he asked his employees to take cuts as well to help colleagues keep their jobs. Seasonal workers were asked to take a 2.5% pay cut; executives 10%; and the board of directors 20%.

The moves saved more than $10 million, and only 50 of the 15,000 Vail Resorts employees were laid off -- which is far better than what Katz thought would happen.

http://money.cnn.com/galleries/2009/news/0911/gallery.economy_heroes/index.html

[SoCalDem]

1. I always thought that a BoD job was more or less a "gratis" thing..

It's obscene that they are paid large salaries, since most of them are already rich or are have other high-paying positions.

We desperately need laws to tie the highest paid to the lowest paid.. by percentage, and layoffs should start at thr TOP, since they have the ultimate responsibility for the business model..

[Liberal_in_LA]

2. I've known nonprofits to require Board members to pay rather than get paid

But the reverse occurs with for profit companies.

[hfojvt]

3. sometimes the rich consider it gratis

Webb Hubbell, a Democrat in the Clinton administration, wrote that his father-in-law was on the airport board, and that he got a 'nominal salary' for being on the board. The amount - $35,000. What I would consider to be a very good-paying job, Hubbell and his father-in-law, considered a pittance.