You might view this as a chance to get some experience negotiating. Talk with them more to see if there is something to sway you more in a direction. The least to come out of it is a chance to practice a skill that almost everyone sucks at.
When negotiating show up with a basket of items that can be on the table. Extra time off (vacation/personal), company paid training, company time to work on pet projects, travel to conferences, better computer/software, small budget for discretionary purchases, assistants or interns, business paid internet to home, etc. They might be truly stuck on the pay issue but there may be something that can make your job easier given the extra responsibility or recognize that this is a promotion. Flexibility on what you are willing to take helps keeps the negotiation conversation going and gives them something to work with.
Make up a package that suits you and bring it to them (something that really suits you not something you think they will accept). Have them respond and see if they come up with any new ideas.
Then go through the rest of the process; pros and cons, selling yourself vs letting down the company, other issues everyone dwell on to come to a decision like this.
edit: When putting together your package, include a pay increase even though they already said it was not possible.
This is probably a worse situation than you might realize. At best you have a micromanaging CEO. Your supervisor is in the role to deal with this. There could be a hundred reasons why your CEO bypassed him, but very few are good. There is a possibility the CEO is very detached, does not trust your supervisor to lead the work, and thinks you are a slacker.
Take some of the advice many people have provided:
- Document everything
- Stay professional
- Look for another job
Your organization or situation may not be suitable for this, but here is what I would suggest doing:
1) prepare yourself to leave the job: save money, dedicate time to search for jobs, update resume, etc.
2) Write note summarizing the hours you put in, what your roles are, and how the pay cut is disappointing.
3) Practice a conversation with your boss expressing what you have written w/o getting emotional or angry. Just an informative talk. Prepare to give him a chance to respond.
4) Have conversation, give him note, verbally inform him that you will only be working on your responsibilities while in the office. The other time is to find a job. Do not verbalize this to him, he will figure it out and probably ask you about it. Have a response ready that is on the line of 'the cut in pay effects my personal life and expenses.' You do not want to directly say you are looking for another job.
5) Hand him note and send same note to his boss or human resources. If he is the top of the food chain, perfect.
6) Spend the time you would be working to find a job.
7) If he reconsiders his pay cut, have followup conversation that the trust had been damaged. Ask him to fix the situation.
8) Leave unless he goes above and beyond to fix trust.
When negotiating show up with a basket of items that can be on the table. Extra time off (vacation/personal), company paid training, company time to work on pet projects, travel to conferences, better computer/software, small budget for discretionary purchases, assistants or interns, business paid internet to home, etc. They might be truly stuck on the pay issue but there may be something that can make your job easier given the extra responsibility or recognize that this is a promotion. Flexibility on what you are willing to take helps keeps the negotiation conversation going and gives them something to work with.
Make up a package that suits you and bring it to them (something that really suits you not something you think they will accept). Have them respond and see if they come up with any new ideas.
Then go through the rest of the process; pros and cons, selling yourself vs letting down the company, other issues everyone dwell on to come to a decision like this.
edit: When putting together your package, include a pay increase even though they already said it was not possible.