CEOs agree to Pay Cuts

This is probably one of the toughest downturns in economy since the Great Depression. During the times of uncertainty, executives are acknowledging the difficult circumstances their employees are facing and agreeing to pay cuts if their organizations are not performing based on shareholder expectations. For example, Russ Smyth, chief executive of H&R Block Inc. agreed to a pay cut if the company was to hit bad times. Russ says he accepted the new contract provision because “I believe in leadership by example.” Correspondingly, David Barger, CEO of JetBlue Airways Corp. and the CEO of First American Corp. also cut their pay. These contract provisions are not very popular among many executives but the number is steadily increasing. Currently, some agree to such contracts while others abandon them.

Managing Change through Innovation – A New Opportunity?

In the beginning of the semester, Dr. Kelley, our HR Leadership professor asked the entire class to participate in HR leadership blogging. I know I am a little late for this introduction but it’s never too late to blog. So let me assure you and express my sincerest interests and desires to keeping up with this blog because I see a lot of values in doing so. However, as you may have noticed, I already missed a blog past Saturday. Not that I am seeking any excuses but I really had to study for my HR in the Global Environment midterm. I’ll make it up…promise :-)

This week has been one of the most challenging weeks in my professional career as I was informed that my position is directly affected by the downturn in economy and that my position is being eliminated effective October 31 leaving me with a two-week advanced notice to look and find another job. What would be your initial reaction? What would you do as a leader? I decided to stay calm and use my professional network of colleagues, classmates, HR societies and LinkedIn. I think I start networking harder than ever before in my life but I knew that with every organizational change and challenge there would be another great opportunity – just need to be patient. Sometimes being patient is easier said than done but the time has come to challenge my competencies in the area of “dealing with ambiguity and composure.” While I should probably still be freaking out about this situation, I decided to take it with ease and write this blog. Wish me luck in my job search and I’ll be sure to keep you posted on the outcome…