Given the good it can accomplish, why does taking a pay cut seem so unorthodox?

July 11, 2017

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Last week the acclaimed actress, Emma Stone made headlines with her revelation that certain male co-stars had taken significant pay cuts in order to achieve parity with her own salary. It’s a nice story. And one that readily feeds into the red-hot narrative regarding “fearless” women “leaning in” and breaking barriers into male-dominated fields. While the feminist aspect is important, the idea of taking a pay cut for the greater good is also a trending topic. Witness what NBA Finals MVP, Kevin Durant did in order for his championship Warriors to stay intact.

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Specifically, a thread on Linkedin caught my eye. Above a link to the Emma Stone story a female advertising executive commented, “I wonder how many of my male peers would do the same?” The implication was not many. My guess is few women would either.

But guess what? I did, willingly and without hesitation. hell, it was my idea! And that’s what I thought about when I’d first read the Stone story. Without getting into names and places, a few years back I took approximately 25% off my compensation in order to significantly bump the salaries of two of my top lieutenants. I had reason to believe one was being courted by another agency. Moreover, I also felt strongly that both individuals deserved bigger raises than the company was budgeted to give. For me, reducing my bottom line to increase theirs felt like a no-brainer. In a weird way I was almost happy to do it. It felt like right sizing. Though he later came around, I recall the CEO first balking at my suggestion. “Nice gesture, Steffan but business just doesn’t work that way.”

Why is that, I wonder? Seems to me such redistribution and/or diminution would help remedy the need for layoffs during hard times as well as mitigate the blade being used on older more expensive workers. My guess is that self-induced pay cuts somehow feel communistic and is antithetical to capitalism. This is bullshit of course. But then why is retrenchment so rare?

I’ll work for numbers that work for you: https://steffanwork.wordpress.com/

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One Response to “Given the good it can accomplish, why does taking a pay cut seem so unorthodox?”

  1. Margaret Essary said

    Bravo, Steffan! Smart business to be sure. I did this once in 2002 and it was freeing…plus the pending layoff would have significantly hurt a key client, leading to more layoffs. Sometimes ya gotta take one for the team 🙂

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