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[quote=Anonymous]Start quietly looking for a new position. See what is out there, but don't make any serious inquiries for a couple of weeks. Your MB might get really, really lucky and find a new position in the next couple of weeks. If so, problem solved.

There isn't much you can do about the mistakes already made...a) agreeing to a reduction in salary b) not speaking up about being threatened with them withholding a reference if you were to leave

If she has received a fantastic severance package they were foolish to ask you to reduce your pay so quickly. Her immediate financial circumstances haven't changed. It sounds like they asked to reduce your salary with the thought that in case it takes MB awhile to find a new job they want to save where they can now b/c eventually the severance pay will be gone/used-up. My gut is that MB is giving you a line about expecting to find a new job quickly...unless she already has some promising leads (which is doesn't sound like she does if she is talking about taking her time finding the "perfect" job).

As a PP suggested you need to sit down with your employers and talk about the length of time you are willing to accept a pay reduction. Set a firm end date and let them know that this greatly affects your finances, and at some point (say 4 weeks from now) you will have to ensure that you are back to collecting a full time salary...whether it is from them or someone else. Acknowledge that while you're happy that she is in a financial position to take her time finding a perfect job you're not in a position to wait consider you've been hit with a 50% paycut.

They are kidding themselves if they think they can just cut your pay in half indefinitely. As hard as it would be to walk away without a reference you might have to do that. It could easily be explained in an interview that you are unable to continue working for them due to having your pay cut in half indefinitely while your employer looks for a new job, and your decision to seek a f/t paycheck has soured the working relationship. 
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