Some large companies began to restore the volume of bonuses to top managers
Walt Disney, General Motors, and other large organizations have begun to gradually restore salaries and bonuses to their employees. As a reminder, they were cut due to the Covid-19 pandemic. The Wall Street Journal analysts are confident that this is a sign of recovery in some industries, writes Forbes.
General Motors, the entertainment giant Walt Disney, the creator of platforms for reviews Yelp, and the oil and gas company Occidental Petroleum informed the company about the restoration of top managers’ wages to the pre-crisis levels.
Disney will cancel salary cuts as early as 23 August. Management made this decision despite losses of $5 billion, which accompanied the company for the third consecutive month. However, some top executives have refused from salary increases to help the company recover from the crisis. Among them is Bob Iger, executive chairman of the board of directors. He is ready to give almost all of his salary.
Other companies argue the decision by the appearance of prospects for revenue growth in the near future. For example, Yelp had to lay off 1,000 employees and send many more on unpaid leave. In April, the press service announced that the salaries of top managers were cut by 20-30%. In early summer, CEO Jeremy Stoppelman said that all this had helped the company be in a stronger position than its competitors.
General Motors announced in April that it would temporarily cut the salaries of its 69,000 employees by 20%. However, the management also clarified that it will return these funds with interest in March next year. It was decided to restore the level of salaries to top managers from the first of August. Moreover, the company plans to repay debts to employees by the end of this year.
In many companies, this recovery indicates recognition that most employees are under stress. They have to take care of children, learn and work remotely. In addition, this indicates that the economy seems to be split in two parts: on the one hand, top managers with already high salaries, and on the other, millions of employees who have lost their jobs or were laid off.
Initially, it was like rallying all people. Today, when the situation has dragged on for too long, it is shifting to a completely different direction.