Offering to Take Less Pay - Equality of Sacrifice Has to Extend Beyond Tech

"Google CEO Sundar Pichai says he will take less pay this year as he joins JPMorgan’s Jamie Dimon and Apple’s Tim Cook in taking a compensation hit" - Yahoo Finance, republished from Fortune, January 25, 2023

 

In the dark days of the auto industry when the Japanese were eating Detroit's lunch, dinner, and breakfast, the Lee Iacocca team swooped in with a new concept for American capitalism. At least for its top rungs. That was the equality of sacrifice. 

 

The rank and file at near-bankrupt Chrysler also were certainly making sacrifices. Those ranged from putting in extreme hours to save the corporation to not balking about the lack of raises and bonuses.

 

Iacocca took on the mission of the turnaround for a dollar a year. The executives he had poached from Ford, where he had headed marketing, risked 1) they would be without jobs if Chrysler went under and 2) there would be a hit to their brand if they didn’t succeed.

 

Currently with the global business slowdown and so many who depend on paychecks losing their jobs leadership should be circling back to that concept of equality of sacrifice. A side effect can be internal solidarity. We who had worked at Chrysler during that ordeal pulled together.

 

What about Disney’s Bob Iger getting a haircut on overall compensation? At this stage of his wealth-building isn’t money simply a symbol? Not what he is forced to use to pay the bills. Actually, a pay cut could enhance his brand, tarnished by his yachting when he might have paid more attention to investor activism.

 

Iger is demanding lots of RTO. In return there could be a fund established for commuting expenses, dependent care, and more. If layoffs play out, more severance can be offered.

 

Over at large law firms, which plan to boost their client fees an average of 8%, the top layer can reduce their Profits Per Equity Partner by at least a few percentages. Already they will get plenty. Those funds could be invested in lobbying to preserve entitlements like Social Security and Medicare. Also 2024 is shaping up to be a tough situation to keep the White House in the hands of progressives. The right has bounced back stronger and smarter from the midterm humiliation. Big Law should be donating more to campaigns. According to Blue Tent, the heavy hitters in contributions are:

 

Paul Weiss


Kirkland & Ellis

 

Latham

 

Akin Gump

 

WilmerHale.

In addition, law firms can kick in more to the severance packages for the laid-off. That could be forward-looking since a number of those driven out of Paradise will wind up in-house with the authority to hire their former employers.

 

In my human resources communications/coaching practice I provide sliding scale fees. Small and midsize businesses are struggling. Ordinary people are being thrown off their game by The New Realities (which no one really can decode). It’s a feel-good to be able to help out in an affordable way.

 

We will come out of the current Whatever with new heroes, just as when American industry was no longer number-one in international trade. Iacocca, once disgraced by being fired at Ford, could have run for US President. Studying which leaders are doing what to sacrifice (or not) is the mandated tutorial for us to form values for a time without precedent. No, this is not 2008. And it isn’t the 70s. It is what it is.

Smart intuitive career and communications coaching, including using the Tarot. Try it, with a five-minute complimentary session. Totally confidential. Then fees customized for your unique budget.

Please make an appointment with janegenova374@gmail.com


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