Boss sacrifices

[croyde]

My OH, who runs a company with 2 partners and 5 staff, has decided, that in order for the company not to fold due to a downturn of work and cash flow problems, that the partners and herself will not take a wage for the next 2 months.

They don't take a high wage anyway but this will mean serious problems for us as I am hardly working at the mo' (Freelance).

I wonder how many other Bosses will have refused their wages in order to keep the staff on?

Personally I'm thinking Fek the staff, I've got kids to feed.

Damn! I might have to sell the Beemer now.

[miniman]

Admirable, but almost certainly unsustainable. Putting themselves under the pressure and stress of not having an income isn't going to help get the business back on its feet. What is going to happen in the next two months that makes them think that things will pick up?

[croyde]

They are hoping that some late payers will have come good by then.

[miniman]

croyde said:

They are hoping that some late payers will have come good by then.

Have they tried factoring the debt? Surely the bank will help if it is a solid business and there is a good chance that this money will come in?

[TheEnd]

At the company i work for we've all just had to take a 15% pay cut, and this hits everyone, the bosses son/co-director had to settle for a 57 plate Merc last week instead of a new one.

[ianash]

croyde said:

They are hoping that some late payers will have come good by then.

There is a formula for working out the likelyhood of getting paid as time elapses. Perhaps there's an accountant on here who can advise.

[croyde]

Cheers people.

I'm not sure of all the details as she only sent me a quick email.

[croyde]

TheEnd said:

At the company i work for we've all just had to take a 15% pay cut, and this hits everyone, the bosses son/co-director had to settle for a 57 plate Merc last week instead of a new one.

Aw diddums

That's aimed at the son BTW. I have had to accept a 30% cut in my rate for one of my clients in order that they MIGHT throw me the odd bit of work.

[V8A*ndy]

miniman said:

Admirable, but almost certainly unsustainable. Putting themselves under the pressure and stress of not having an income isn't going to help get the business back on its feet. What is going to happen in the next two months that makes them think that things will pick up?

4 of us did this back in the last recession. Took no wages at all for 6 months(some nominal money was paid to pay some urgent household bills). Kept all staff on. I worked a 7 day week without one break for a year.

From then on I worked right back to the floor up until last year when the firm was sold for a tidy sum. The original key staff are still there today but have stated that they wished we were back to guide them through the turmoil now.

Somehow I don't think I could handle that again, but it paid off. I hope it works out.

[northandy]

our CEO has taken a 50% pay cut..

saying that he'll still be getting $10million a year

[Pickled Piper]

It's very common with small companies. I've seen it several times. The flip side is that during the good times they take a large chunk of profit.

It's called running your own business.

pp

[V8A*ndy]

Pickled Piper said:

The flip side is that during the good times they take a large chunk of profit.

pp

To save for the bad times and to make your business stronger/expand without getting into debt. What our so called Gov should have done.

[Merlot]

The members (5 directors) of the company I freelance for have not taken a salary for ~6 months.

[schmalex]

ianash said:

croyde said:

They are hoping that some late payers will have come good by then.

There is a formula for working out the likelyhood of getting paid as time elapses. Perhaps there's an accountant on here who can advise.

It is the square root of fk all

[jamoor]

TheEnd said:

At the company i work for we've all just had to take a 15% pay cut, and this hits everyone, the bosses son/co-director had to settle for a 57 plate Merc last week instead of a new one.

You could I guess setup your own company and buy your own 57 plate Merc?