Over at http://www.computerworlduk.com/management/careers-hr/people-management/news-analysis/index.cfm?articleid=2085 you can not only read about HP’s proposal to reduce staff salaries you can even read the internal mail the CEO (Mark Hurd) sent breaking the news. Now I believe giving everyone a paycut and no one losing their jobs (except for the bankers who casued this chaos who should lose jobs and possibley body parts) is a sound policy. It’s good for people (most of us could still eat on a bit less and most of us want to keep our jobs) and its good for the company (who don’t lose valuable resources) and it’s seems fairer & more equitable.

The CEO is offering up 20% of his (base) salary and asking for a measley 5% from the lowest ranks of salaried staff. A generous, inspiring lead? Hmm, looks less so once you check the figures http://media.corporate-ir.net/media_files/irol/71/71087/2009_Proxy_Statement_Supplement.pdf . His base pay is $1.45 million (most of us might think we  could afford a cut on that!) however his bonuses last year amounted to $41 million (that would do me fine) so his actual cut is less than 1% of total. 

I would assume if things were going badly he wouldn’t get any bonus but looking at the bankers that doesn’t seem to be the way things work. In fact assuming that the wage cut allows the company to perform well we can expect his bonus to do well - so he will receive more as the staff get less (ever the nature of business). In effect he pockets the cash that Now, what was I saying about fair & equitable?