Earlier quoted context omitted.
I'm keenly aware of the disparity. However... - If we do not keep the highly paid senior sales rep, we're going to have no customers and thus... everyone gets canned. - They are objectively better off leaving for another firm, where they don't need to worry about impending doom. So we need to provide an appropriate incentive to prevent them from breaking ranks and screwing everyone else left behind. - The humble fact…
I guess the real answer here is I'm not cut out to be an exec and I don't understand the mindset of people who are because I'm fine getting payed $100k a year (modulo inflation) for the rest of my life and I've lived most of my career at $30k, and I would never fire anyone to increase my own salary. I would sooner go broke at a company I ran than hang people out to dry who depended on me for a livelihood.
How about this instead? Your company is overstaffed due to a massive drop in sales. You will run out of money and will have to fire everyone including yourself in one month. Your other choice is to cut 80% of the staff immediately and your business will make enough to pay everyone’s salary who remains.
The better choice for everyone is the surviving business, and that’s the one that puts more money in your pocket. Letting people go is a business decision and it’s very often the correct one. Good business decisions lead to making more money.