Crazy Nut Job
Pay Cuts Coming

Let’s see if there’s a pattern here (all headlines from Bloomberg):

  1. FedEx Cuts CEO Pay, Freezes Hiring as Volume Drops

  2. Motorola Freezes Pensions, Pay to Cope With Slump (same from streetsofchicago)

  3. Hewlett-Packard Said to Be Freezing Pay to Cut Costs

The FedEx announcement also mentions suspension of 401(k) matching. Cuts to retirement matching are stealth pay cuts. Salaries have been frozen. The next step is other benefit cuts. The step after that is genuine pay cuts. Expect them.

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