The economic downturn caused by the global pandemic continues to take its toll, with employers cutting jobs and wages. According to Federal Reserve Chairman Jerome Powell, the U.S. economy is slowing and is “not out of the woods yet.”
Many companies are responding to the economic slowdown by slashing jobs and executive pay. Layoffs have become increasingly common, with employers cutting positions to reduce costs and adjust to the new economic reality. This has impacted workers across all sectors, as well as high-level executives.
Businesses have also reduced executive pay by reducing salaries, bonuses and other forms of compensation. Some employers have implemented pay cuts of 10-20 percent, while others have cut salaries by as much as 40 percent. In addition, employers are also eliminating or reducing perks such as vacation days and travel allowances.
The economic slowdown has also had an effect on stock prices, with many stocks declining significantly since the start of the pandemic. This has further reduced executive pay through stock-based compensation, with some executives forgoing their stock awards or taking pay cuts related to the decline in stock prices.
The economic slowdown is proving to be a difficult time for many businesses, and employers are responding by cutting back on expenses. Job and executive pay cuts are becoming increasingly common as companies adjust to the new economic reality. These cuts are likely to continue for the foreseeable future, as companies work to survive the economic downturn.