Organizations That Cut Chief Executive Compensation Due to the Recession

Chief executive proposed cut for the current fiscal year, ending March 2010. Other employees were not given pay increases, and organization laid off 36 employees.

Chief executive proposed the elimination of 1-percent salary increases all employees were to receive in July 2009.

Chief executive proposed cut; museum’s senior leaders also took a 5-percent cut in annual pay.

Chief executive declined her incentive performance bonus, and did not receive a merit increase, in the fiscal year ending in June 2009; organization suspended merit increases at the national headquarters and Biomedical Services in the 2010 fiscal year.

Organization declined to disclose amount of the cut, which was proposed by the board.

Organization declined to disclose amount of the cut proposed by the CEO.

Organization froze other employees’ salaries and required employees to take a five-day furlough.

Chief executive did not accept increase promised in his contract; organization froze salaries and reduced number of employees by 4 percent.

The organization’s president accepted a cut in 2009 that affected her salary and benefits. Salary and benefits were also reduced for other employees, at the suggestion of the employees.

Chief executive proposed his own 10-percent reduction; those who earn $100,000 or more received 5-percent cuts.

Chief executive’s incentive bonus was reduced by 7 percent.

President’s pay was cut by 5 percent in January 2009 through the end of the fiscal year in September.

Chief executive took an 8-percent decrease from January through June 2009. This cut was increased to 10 percent in July.

President and senior managers declined to take merit raises. Other staff members received merit raises.

Organization provided no other details of the cut.

Organization froze salaries and has not filled open positions.

Organization’s president and senior managers voluntarily reduced their salaries.

Chief executive, directors, and managers did not receive bonuses this year; organization reduced size of annual pay raises of 1 to 5 percent to 0.5 to 2.5 percent.

Organization plans to cut the president’s pay in October for the 2010 fiscal year, freeze other staff salaries, and eliminate incentive payments to senior managers.

Chief executive did not receive annual bonus; organization held open one vacant position.

Organization provided no other details of the cut, which was proposed by the chief executive.

Chief executive and vice presidents cut their pay by 10 percent for four months at the beginning of 2008 to avoid cutting salaries of other employees. Full pay has now been restored. Organization suspended pension contributions in February 2009 and has not restored them.

Executive proposed salary cuts in July 2009 on a tiered scale from 1.5 to 5 percent.

Chief executive did not accept a performance-based bonus, retirement match, or salary increase in 2009.

Chief executive and senior staff members developed a plan to cut expenses by allowing each employee to choose which type of cut they would take: pay reduction, smaller contribution from the library to his or her retirement plan, or smaller percentage match from the library when the employee puts his or her own money into the plan. The percentage of the cuts was based on salary, with highest-paid people taking reductions of 10 percent and lowest-paid people taking 3.5 percent.

Organization made layoffs in its publishing division, and reduced pay for remaining employees.

Chief executive proposed that his pay be frozen from 2008 to 2009.

Organization provided no other details of the cut, which was proposed by the board.

Cut took effect in July 2009.

Chief executive’s cut took effect in May 2009; other executives voluntarily reduced their pay by 3.5 percent in 2009.

Organization provided no other details of the cut.

Organization cut salaried employees’ pay on a tiered scale in July 2009; it imposed furlough days on all hourly employees.

Organization reduced all staff salaries by 10 percent, 7.5 percent, or 5 percent, with the highest paid taking the biggest cuts.

President declined salary increases for the current academic year and will do so for the next. Members of its Academic Council, senior administrators, and department heads will forgo salary increases next year.

Organization froze chief executive’s pay.

Administrative employees who earn more than $50,000 had a pay cut of 10 percent.

Organization provided no other details of the cut, which was proposed by the board and CEO.

Organization provided no other details of the cut, which was proposed by the board and CEO.

Organization required staff members to take furloughs in 2009 equating to an average pay cut of 2.5 percent, and made a 10-percent cut in staff.

Organization provided no other details of the cut, which was proposed by the CEO.

Chief executive voluntarily froze her own pay.

Chief executive proposed cut to his pay in the 2009 fiscal year, and the organization also reduced the compensation of senior managers by 13 percent.

Organization provided no other details of the cut, which was proposed by the board.

Organization cut chief executive pay for six months starting in July 2009 and has reduced its employee roster by 10 percent through layoffs and not filling vacant positions.

Chief executive proposed cut, and board approved it, in July 2009.

Board reduced bonuses and retirement contributions throughout the organization.

Chief executive proposed the cut, and board approved it.

Organization declined to disclose amount or details of the cut in executive’s pay.

Organization reduced contributions to retirement plans for all employees by 5 percent.

Organization has frozen chief executive’s pay for the last two years.

The cut, proposed by the chief executive, will be reflected in organization’s fiscal year ending March 31, 2010.

Chief financial officer and board proposed cut to executive salaries by 5 percent.

Chief executive and association directors did not receive merit increases; organization suspended retirement contributions for 2009.

Executive’s pay cut was part of organizational restructuring he proposed and the board approved.

Executive and others proposed cut of 1 percent plus eliminating her bonus; management received 1-percent salary cuts.

Executive proposed two-week furloughs for senior managers in spring 2009.

Chancellor proposed the cut.

Organization provided no other details of the cut, which was proposed by the chief executive.

Chief executive and senior managers proposed 5-percent salary cuts for themselves.

n/a Not available.

* Organization disclosed that it also cut other staff members’ pay.

**Executive is no longer at organization, and cut may apply to a new chief executive.

† Compensation value is for the year ending in 2007; and for United Way for Southeast Michigan, the year ending in March 2008.