Working for a publicly listed company has both good and bad points. A definite bad point is that we are not just focused on the bottom-line but also on the way we spin it for the sake of shareholders. As we have a August year end, we have received a memo from our CEO to manage our pay expectations. After talking about the redundancies that have been made and the savings that have been delivered, he goes on to say:
The direct effect of the sudden and substantial fall in markets has been to reduce the company’s income during the last financial year and these will inevitably have to be reflected in bonus payments and salary reviews in respect of last financial year to the end of September 2009. We are aware that our staff around the group have worked extremely hard over the last 12 months and may be disappointed that their bonus will fall year on year.
Not what you want to hear, especially as they already used this little trick last year and I ended up with a sackload of depressed shares. Not so clever when you were hoping for cash but hopefully when I am 50, they will be worth millions.. Anyway, like a good business school graduate, having slapped us down and warned us of how insecure our jobs are, he goes on to say:
I am therefore extremely confident that next year should show a strong recovery in both overall income and, more importantly, margin, which we would anticipate would be reflected in next year’s salary and bonus review.
I shall be keeping my eyes peeled to see what remuneration he gets when our annual report come out!