DISCLAIMER:  This is a fictional work.  Any resemblance any persons, companies, or events described in this work is purely coincidental.

I've been a CEO of this company for some time now.  The company has been blessed.  Profits are up, and we are continuing to grow while other companys much older than ours are closing their doors.

Most of the staff has had their semi-annual reviews and are hoping for raises.  We are getting ready for our annual general staff meeting.

I've got a tough job ahead.  One of my tasks is to be a sales man. Sometimes I have to sell bad news. 

This week I had to tell everyone that we are not going to be handing out any performance increases.  No raises for you...

The board has determined that the best way to maximize dividends and our bonuses is to increase our bottom line.  Well, there are only so many ways to collect that money.  

We've had a great year.  We brought in dozens of new customers.  Some of our vendors made heavy investments into us.  We've build new facitlities and looks like there is no end in sight.

How can I spin this?

Then it hit me.  The recession/depression that is currently going on.  I can use that.  

What I told the staff was: Although we are doing well as a company, we are not going to be giving raises this year.  By not giving raises we decrease the likelyhood of having to do layoffs if this take a down turn.

Well, most of the staff seemed to accept it.  I think some of them saw through the snow job.  I know that they dont want to lose their jobs when the economy is so rough.  Some of them didn't look too happy about it.  We'll have to wait and see what happens next.

Review time has passed, I shouldnt have to worry about this again until next year.  I got my bonus, and a contractual bump in salary.  So did most of the board.  Our dividend pay out was nice too.  I may get that third house in the Pocanos, not sure though... I really had an eye on that cigarette boat.

But hey, I had to do it.  I've got expenses and I needed that big bonus to cover my expenses and to cover obligations I have with several charities.  Plus my son is starting a business and I wanted to give him some seed money.

Ah well, the staff doesn't hang with me anyway, they'll never know.

Of course if I had given the raises... I would have still gotten a bonus, a little smaller, but still there.  I would have still gotten my salary bump, a little smaller, but still there.  My staff retention would be better and more productive.  The stock dividends would have been a little smaller, but still there. 

I suppose a raise may have actually helped stimulate the economy by providing the staff with more investment capital for savings and buying.

You know the real irony?  

If we do lose customers later, if things take a sudden turn, we won't hesitate for one minute to cut staff and none of that money is going to buffer anything or help prolong anyones job.  We will close facilities in a heartbeat that we dont need at the moment.  When things improve, we will simply hire new staff.  With unemployment this high, we may be able to get better staff at a lower rate out of their own desperation.

Its funny how business works.  I convince them we are a family, but lie to them.  I get their loyalty, but really have none for them.