back to article Dixons Carphone top brass take 20% pay cut as swathes of Brit workforce furloughed

Dixons Carphone CEO Alex Baldock and his fellow execs have agreed to a temporary pay cut as they prepare to furlough swathes of the workforce weeks after the UK government forced the closure of stores. "This is a uniquely challenging situation which means that we need to take extraordinary (and temporary) measures now to …

  1. macjules Silver badge
    Flame

    The Wetherspoons Troughing Method

    Just keep paying those share dividends. Don't worry about your staff - the poor bloody taxpayer will cover them.

    PS: Don't forget to announce you are taking a 25% pay cut and remember to leave out that you just took 20% options in shares.

    1. Phil O'Sophical Silver badge

      Re: The Wetherspoons Troughing Method

      Don't forget to announce you are taking a 25% pay cut and remember to leave out that you just took 20% options in shares.

      Taking a payment in stock options instead a salary isn't an entirely unreasonable approach, options like that only pay out if you stay and the share price goes up. If the company doesn't survive the crisis, or if you bail out, then you get nothing, but if it weathers the storm & returns to profitability those options will be valuable.That's why they are used as bonuses, as a way to persuade senior employees not to leave, and to commit to making things work.

      1. The Nazz Silver badge

        Re: The Wetherspoons Troughing Method

        "as a way to persuade senior employees not to leave, and to commit to making things work."

        Or, as frequently happened in the early to mid 80's when these share incentive schemes really took off, you knew precisely when senior staff would leave. Three years and one month from the granting of the options. The moment the Share Option purchase was enacted and processed. And onto the next firm offering such inducements.

        I personally was sat next to my boss as he signed his Option form, garnering circa 5 years of Salary tax free, and then calmly signed his Resignation letter. No surprise to the Board either.

        1. BebopWeBop Silver badge

          Re: The Wetherspoons Troughing Method

          Not to mention that these mechanisms drive manipulations of share price rather than long term company investment, share buyback anyone?

  2. alain williams Silver badge

    I would be more impressed ...

    if he paid himself the furlough maximum of £2,500 per month. 80% of his annual £850,000 is £56,666 per month - about 22 times the furlough maximum.

    1. IGotOut Silver badge

      Re: I would be more impressed ...

      Hey, give him a break. The Bugatti needs a service and the swimming pool needs to be kept heated you know.

    2. Anonymous Coward
      Anonymous Coward

      Re: I would be more impressed ...

      F*** me, his REDUCED monthly salary is around 3x mine or my colleagues' ANNUAL salaries - and we're Key Workers!

      Poor chap, however will he manage?

  3. Charlie Clark Silver badge

    What is this furloughing?

    Isn't it just (unpaid) leave?

    1. Anonymous Coward
      Anonymous Coward

      Re: What is this furloughing?

      Maybe you should have looked at the news at some point in the last month

      1. Cereberus

        Re: What is this furloughing?

        After the useful comment from the ever so friendly AC furloughing generally is unpaid leave, whilst still remaining technically employed by a company, and not doing any work for that company.

        In this case it is a little different as if an employee is furloughed they are not allowed to do any work, and will receive 80% of their normal annual pay (not including extras like overtime as far as I know) which the employer claims back from the government - this payment being restricted to a maximum of £2,500 per month.

        The idea is that when the lock down is lifted and businesses can get back to work they have the staff still in place and in the meantime haven't gone bust due to the cost of wages, operating cost (to a greater or lesser extent) etc.

        1. Anonymous Coward
          Anonymous Coward

          Re: What is this furloughing?

          True, but the poster would have to have been blind and deaf not to have heard anything on the radio, online, in print media, and on the daily announcements from the government.

          ...does he know about Covid-19 yet? Or do we have to explain that too?

          1. Jimmy2Cows Silver badge

            Re: What is this furloughing?

            Hearing/seeing the term everywhere and understanding its meaning are two different things.

            Even if the general meaning is understood, there may be nuances which can bend the meaning beyond its standard interpretation - as in this government scheme, specifically not being allowed to work whilst furloughed.

            We shouldn't slate people for asking a reasonable question, especially for something which can take on a specific meaning in certain contexts.

            Sure, [search-engine-of-choice] is your friend and it's not hard to look things up these days. But still, this may not address the specific nuances for each case.

            So ask away, just keep in mind some people will get tetchy about it.

      2. Charlie Clark Silver badge
        Stop

        Re: What is this furloughing?

        So, if I watch the news and it contains terms I don't understand the meaning will somehow seep into my brain? I'm not that steeped in UK employment law but my understanding is that it is a US-only term and covers all forms of leave:

        a period of time that a worker or a soldier is allowed to be absent, especially to return temporarily to their own town or country.

        In the UK the term is "unpaid" or more likely "enforced" leave (of absence) and "furloughing" has no legal status.

        1. This post has been deleted by a moderator

  4. SVV Silver badge

    Tesco is paying shareholders £900m in dividends while enjoying £585m from the government

    Well, then I expect them to deliver £585m in shares to the government by the end of the week, in lieu of a refund of the cash they were given. The government cash is meant to keep the business from going bust so that it can survive and participate in the normal risk / reward sector of the economy again afterwards. It's not a free reward for shareholders because the risk materialised. Behaviour like this is also not going to be looked upon well by the public if the damage causes mass hardship and executive snouts stay in the trough.

    1. Anonymous Coward
      Anonymous Coward

      Re: Tesco is paying shareholders £900m in dividends while enjoying £585m from the government

      Are you suggesting nationalising Tescos, you corbynist libtardcucflake !!!!!!??

      1. BebopWeBop Silver badge
        Joke

        Re: Tesco is paying shareholders £900m in dividends while enjoying £585m from the government

        Ahh - channeling BombasticBob....to great effect - we all need to do our bit

        1. Jimmy2Cows Silver badge
          Holmes

          Re: Tesco is paying shareholders £900m in dividends while enjoying £585m from the government

          Not SHOUTY enough.

          1. AndyS

            Re: Tesco is paying shareholders £900m in dividends while enjoying £585m from the government

            Ooh, can we do Jake too?

            When I was running Tescos from the USS Nimitz during 911, I forewent my entire paycheck to keep the kids in school. Of course it wasn't easy, as we were limited to using IBM 5100s, but I wrote the assembly code myself to lash things together, while under fire from the Japanese.

  5. The Nazz Silver badge

    Too hasty.

    Ok, ok, uniquely difficult times (in my lifetime) but i was amazed how generous this new Chancellor was with his massive giveaway in his rush to appear POPULAR with the masses. The precedent is set.

    Mulit-millionaire bosses ( billionaires if you take top tier football clubs), indeed multi-millionaire footballers, struggling to get by on 20% less, while ordinary workers are dumped on the Govt tab.

    Maybe the scheme should have required that ALL of its staff, board room down are to be furloughed at £2500 a month max, no exceptions, if any are?

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