Salary Freeze
Definition of 'Salary Freeze'The action of a company suspending salary increases for a period of time. By freezing salary increases for a given period, management is hoping that the company will be able to produce better bottom line results by keeping fixed costs controlled. The downside of a salary freeze for a company is that employee morale will typically take a hit and the firm may end up losing valuable employees due to compensation issues. |
|
Investopedia explains 'Salary Freeze'A salary freeze typically occurs when a company is experiencing financial difficulties. It may choose to freeze salaries temporarily in order to minimize layoffs. Once the company is in a better financial position, the salary freeze would likely be lifted. |
Related Definitions
Articles Of Interest
-
Evaluating Your Personal Financial Statement
Determine your net worth by making your own cash flow statement and balance sheet. -
Two Roads: Debt Or Financial Independence?
A higher income won't make you richer - unless you learn to live on less. -
A Guide To CEO Compensation
Make sure you assess whether a CEO has a stake in doing a good job for you, the shareholder. -
How To Save More For Your Retirement
The Economic Growth and Tax Relief Reconciliation Act of 2001 made it easier to prepare for the future. Will you be ready? -
Compensation Myths: Burger Flipper Vs. Investment Banker
Though these two jobs are perceived as being opposites, the compensation can be quite comparable. -
Pay Attention To The Proxy Statement
Don't overlook this overview of a company's well-being. -
Lessons On Corporate Dividend Payout And Retention Ratio
Why are dividend payout and retention ratios important to consider when investing in company stock? What companies have high ratios?What constitutes a high dividend payout and retention ratio? ... -
Conglomerates: Cash Cows Or Corporate Chaos?
Huge companies may not be as infallible as previously assumed. Find out why bigger isn't always better. -
Cashing In On Corporate Restructuring
Companies use M&As and spinoffs to boost profits - learn how you can do the same. -
Top 4 Financial Jobs You Can Do From Home
You don't have to go to an office to make a great salary in the financial sector. Here are the top four highest paying financial jobs you can do from home.
Free Annual Reports