Been there and done that. One startup I was at instituted a 50% pay cut for senior execs, 25% for the level below that and no cut below that. The CEO took a 100% pay cut.

This let us get through a short rough patch without layoffs.

I worked at middle-sized company that instituted a pay cuts, cutting all bonuses and stopping raises. After year, company lost almost every person in tech managenent and most of team leaders, their clients actively executing forking rights and no one believes in company future now.

I once heard wise words from some CEO. In harsh times, clients do not want cheaper and worse services from us. They want less services. So we are moving out headcount down, while keeping pay and even execute raises for those who stay.