Next year the CEO will take a pay cut of 20%, senior executives of 7.5-10%, salaried employee a cut of 5% and hourly employees 0%. Sounds pretty fair. Right?
Look behind the facade and you'll see that the hourly employees are also taking a cut, maybe one larger than the bosses. For the hourly people, there will be no bonuses in 2009 nor will FedEx continue to match the employee's pension contribution.
The CEO, Fred Smith, will not starve. Only 13% of his compensation comes from salary, the rest is from options, more than half of which are not tied to any performance goals. And he still has $27,500,000 in his pension fund.
Then, there is the question as to whether Fedex drivers are independent contractors or employees. The courts seem to go back and forth on the question.
No comments:
Post a Comment