Ok so you know things are bad when even the Boss takes a pay cut. However on the other side it is a pretty stand up thing to do.
Dirk Myer is planning to take 20% off of his personal salary to help the financially hurting AMD cut costs. But he is not the only top exec to do this. It seems that all US and Canadian VPs will take a 15% drop in pay also.
This move will help save many people's jobs I am sure. Unfortunately it will not save everyone's there will still be an employee reduction of about 9%. Too bad other big companies do not follow suit. (Are you reading Wall Street and US Auto Makers?)
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The statement continued "Beginning in February, we are undertaking several steps to lower costs, including temporarily reducing employee base pay and suspending some benefits programs."
It seems even big man Meyer himself will be taking a hit, with AMD confirming that "Subject to the approval of the Compensation Committee of the Board of Directors and execution of an amendment to his employment agreement, CEO Dirk Meyer will be taking a temporary reduction of 20 per cent in base salary."
Meyer won't be the only one having to bite the bullet though. According to Chip-Kong similar salary reductions will be implemented all across the US and Canada, with 15 per cent for VPs and above, 10 per cent for all other non-overtime eligible employees, and 5 per cent for all overtime-eligible employees.