What a furlough week really costs the top brass; document shows their hit is much less than yours

[Newsjock]

Source: Gannett Blog

Regarding the new round of mandatory one-week furloughs, Anonymous@12:24 p.m. today asks: "Just out of curiosity, what does it mean in real people dollars if CEO Craig Dubow and COO Gracia Martore take a 'reduction in salary equal to a week's furlough?' Maybe I missed this, but it would help provide a snapshot that might be jaw-dropping when placed in context with what the peons make, especially when balanced against what Martore and Dubow take home each year in salary and bonuses."

... Most important, the loss of a week -- an effective 1.9% wage cut -- only applies to executives' base salaries. Much of their pay is bonuses, stock awards and pension value increases, which aren't subject to the furlough loss. So, as a percentage of total pay, the furlough week will hurt them far less than it will the average employee. That is because, in the examples below, the executives' total pay was effectively cut only 0.5% to 0.6% -- much less than the 1.9% for you. After all, their bonuses are based partly on successfully cutting your pay.

... Craig Dubow, chief executive
Minimum base salary: $1.2 million. (Beginning Nov. 1, 2008 and continuing through 2009, he voluntarily reduced his base to $1 million.) The loss of one week would cut his 2011 salary $19,000
In 2009, however, he got an additional $3.8 million in stock awards and pension value not subject to a furlough-related loss

Read more: http://gannettblog.blogspot.com/2011/01/what-furlough-week-really-costs-top.html

[Hannah Bell]

1. kr

[loudsue]

2. There is just not one human being who is worth this much money.

There just isn't such a human.