It’s a long time ago – 14 years now. I was Managing Director of Excel Clothing, struggling to pay off its outgoing directors dividends and its Chartered Accountant owner and his entourage, when I took a 15% pay cut. Forget the dividend payments, the pension and bonuses – like they were going to happen? This was a pure and simple pay cut
.The business was in trouble, and as Managing Director I had to take responsibility for this. I negotiated with the Chairman a drop in his own fees by 60% in return, and the negation of the non-executive directors fees.
Sadly this did not save the company. There were too many extenuating circumstances .. However, I didn’t add to them and I’m proud of that.
In addition to supporting the owner of the company and his personal liabilities I also attempted to support as many of the creditors that the company owed at Administration. The winding down produced far more cash than the Administrators suggested and it took them seven years to spend that in charges. (Sorry but this had to be said!)
Back to the FAT CAT … I could have sued the holding company – my employers for the year’s notice period that I was due … but I didn’t deserve that. As Managing Director my responsibility was to create a profitable ongoing young fashion retail company and didn’t!
Was I wrong?
A year’s salary off my mortgage would have made a big difference to my current life style. But for what ever reason and what ever the circumstances I didn’t deliver what I was charged to do. So I remain a skinny cat!
Do tell the world about your SME fat cat experiences.