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3 signs you need to take a pay cut

CEOs are slashing pay left and right this week, from President Obama to J.C. Penney’s CEO. Are you a candidate for a pay cut?

Whether it was federal budget cuts, shareholder activism or the 99 percent versus 1 percent debate, CEO compensation has been in the news a lot these days. Ron Johnson, CEO of J.C. Penney, was given a 97 percent pay cut due to poor financial performance in 2012, according to figures released this week. And on Wednesday, President Obama announced that he’ll be giving back 5 percent of his salary in response to federal workers being furloughed due to budget cuts.

Taking a cut in your pay can send the message to employees that you are committed to your business and willing to make whatever sacrifices are necessary. If you’re a one-man-show, a pay cut can free up cash to invest in your business’s long-term future.

But how do you know when it’s appropriate to scale back your own salary? Here are three signs it might be time for you to take a pay cut:

…to read this article in full, visit leading US entrepreneurial resource entrepreneur.com

Entrepreneur.com

Entrepreneur.com

Entrepreneur Magazine has been inspiring, informing and celebrating entrepreneurs since 1973. Entrepreneur.com offers real solutions to the challenges faced by entrepreneurs, including tips, tools and insider news to help build – and grow – businesses.

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