Yahoo (NSDQ: YHOO) is taking an increasingly common step of suspending pay increases for most workers, AP confirmed. Yahoo’s new CEO Carol Bartz informed staffers of the policy change this week, though it might be waived for some employees who move to other positions within the company. Yahoo let go of 1,500 employees last month.
While wages will hold steady, compensation doesn’t appear to be frozen. So while Bartz probably won’t see her $1 million salary grow this year, the new chief still stands to make as much as $40.75 million through stock options and bonus pay included in her contract.
A number of companies like *NYTCo* and *Dow Jones* have said they will not give out raises this year, as the economic picture continues to look bleak. Earlier today, as part of its earnings report, *Microsoft* CEO Steve Ballmer said that the company would also maintain wages at their current levels. As many companies have already slashed its workforces by thousands, pay freezes are presented as a way to preserve jobs and rein in costs. What remains to be seen is if measures like the mandatory one-week, no-pay furloughs imposed by *Gannett* this quarter will also be adopted by others as the economy shows little sign of picking up anytime soon.
Photo Credit: t3rmin4t0r
Yahoo should cut their staff in 1/2 and go back to the staff they had in 2003. They have not introduced 8000 new employees worth of products and even if you add 1 sales person and 2 people to support that sales person for the increased direct sales– you have under 1000 new employees for the revenue numbers.
Yahoo's should be happy with a pay freeze rather than a return to the right size!