In one of the most breath-taking pieces of pretzel logic we’ve ever seen, Spansion’s board of directors last week restored the 10 percent cut in pay given to its executive officers last October on the very same day it let go 3,000 employees.
The effective pay raises were characterized as “an employee retention program” designed to provide “an incentive for executive officers and certain other key employees to remain employed” with the Sunnyvale chip maker that last week defaulted on $266 million in debt obligations.
For executives who seem to be impressed with big numbers, we’d like to offer Spansion’s board 667,000 more cost-effective reasons they might give their executives to convince them they should choose to “remain employed” than increasing their pay.
That’s the number of first-time applications made for unemployment in the U.S. last week, the highest number in more than 25 years. And given the 3,000 Spansion employees let go this week, that number may well rise some more.
There’s an adjective for such behavior: shameful.