An interesting article crossed my desk this morning. Turns out Fidelity Investments may cut bonuses and profit-sharing this year, if the recession continues. Fidelity's president, Rodger Lawson broke this news to his employees in a memo. That said, Fidelity spokeswoman Anne Crowley noted that merit-pay increases may be limited to low- and mid-level employees -- which is actually good news for the little guy for once.
Since October, the company cut roughly 7 percent of its workforce, which is more than any other U.S. fund manager. My guess is that these cuts haven't come from the top excutives on the job heap. These cuts were made amid the S&P 500 Index's drop of 39 percent, which came during a time when shareholders withdrew $34.2 billion from the company's stock funds. So of course, the company made sure the little guy was the one laid off; you know that he makes all the financial decisions, right? Of course, that is the Don Quixote in me, always tilting at some sort of windmill.