1. In your opinion, how fair was this approach to cutting pay when times got difficult at Aquapoint? Explain your reasoning.
2. As business improves, what approach should the company follow to restore the pay of the executives and the employees? Why?
3. How can Aquapoint ensure that its employees appreciate the leaders' willingness to share the pain of the recent economic downturn? Why is it important for employees to witness management's commitment to ethical conduct?

The downturn in the construction industry took a heavy toll on Aquapoint, a company based in New Bedford, Massachusetts, that makes systems for wastewater treatment. As builders delayed construction of new housing developments, revenues began to slow.
When a big account, a retirement community, lost bank financing, Aquapoint's management knew the company wouldn't have enough cash to pay its bills.
Some companies might start with layoffs or pay cuts for employees, but Aquapoint's leaders thought they should share the pain. The top three executives cut their pay by half. Then they asked employees to accept a 10 percent pay cut. The next months were a struggle, but management thought the company would prosper as soon as the economy began to improve. They didn't want to lose valuable employees just before the next surge in business. For a few months, the executives cut their pay again, down to zero. As the company passed the worst point, two of the executives began to work for 25 percent of their pay, and the executives hope they can eventually make up for the lost salaries with a bonus.