Our CEO sent out the typical Rah Rah letter to all us peons. Things are tough and we all have to sacrifice etc. Of course the leaders are going to lead the way with their sacrifices. Their example is that they will no longer be able to accumulate vacation time but have to use it every year! From the director level and above they will do this and save 3.5 million a year. OMG! "Things are tough and I am going to sacrifice and take my vacation!" I am paraphrasing him but you get my idea.

I understand that unused vacation is considered a debt. It will affect your bond rating etc. But what the hey to save 3.5 million a year. How much vacation would that take?

I am not a bookkeeper by trade and admit I don't understand this. I need some help to understand how this works and why this is a sacrifice.

Thanks