HP Pay Cuts – an unfair act of economic opportunism and greed.

Damian Saunders writes:

HP’s CEO, Mark Hurd announced, on the 20th February that he would be implementing a company wide cut in pay for all employees. Starting with a reduction in his own salary by 20%, followed by senior executives who would take a drop between ten and fifteen percent, regular employees 5 percent and exempt employees 2.5 percent. All this in reaction to a 13.5 percent fall in the company’s first quarter profit.

[…] First we need to put Mark Hurd’s 20% salary cut into perspective, remember he is only taking a cut to his base salary ($1,450,000) which amounts to a $290,000 drop. Seems quite reasonable until you examine the following, publicly available, information. Mark Hurd’s total compensation in 2008 was $42,514,524 […] a 68% increase in the total package from 2007 to 2008. […] So, the question is; what’s the significance of his stated 20% cut in base salary? I would suggest next to nothing. […] Put bluntly, 6 people at the top of the HP pyramid accounted for $142,774,325 in compensation in 2008 alone. That is an obscene amount of money.

[…] Let’s look at the plight of the HP employee. The first thing we have to consider is that, unlike Mark Hurd, a 5% cut in salary is in fact a 5% cut in total compensation. Someone on a salary of $65,000 would be losing $3250 per year before tax, or $270.00 per month. Some would say this is a small price to pay for keeping your job but I think holding that gun to an employee’s head is outright exploitation and can not be condoned, especially when they have already been exploited enough for the sake of high profit margins and Mark Hurd’s stellar career performance. Ask a majority of HP employees about their current remuneration and you will be lifting a rock that you don’t want to look under.

I recommend you read the rest of the post, and spend some time browsing through the many comments. You will get a pretty good idea of the morale of HP employees these days.

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