Repros Therapeutics (NASDAQ: RPRX) easily takes the prize for most dismal earnings report of the day. Not only did the drug firm report a wider-than-forecast second-quarter loss, it also warned that bankruptcy is a real possibility unless the company can secure significant additional capital.

Specifically, Repros confessed to a second-quarter net loss of $8.9 million, or 59 cents per share, compared to Wall Street's consensus estimate for a loss of 46 cents per share. The company chalked up its poor results to a 16% annualized increase in clinical development activities for Proellex -- which has been placed on clinical hold by the FDA -- as well as a 60% year-over-year jump in general and administration expenses.

Yesterday, trendy retailer Gap (NYSE: GPS) announced that it will reduce its board to 10 members from 13, and it will cut the compensation for the remaining board members.

The three board members who will not return are Howard Behar, Penelope Hughes, and Doris Fisher. Behar and Hughes agreed to not seek re-election at Gap's annual shareholders meeting, which takes place in May. Fisher is the company's co-founder and will step down from the board and accept a role of honorary lifetime director.

In addition to the three members leaving the board, Glenn Murphy -- the firm's chairman and CEO -- has voluntarily cut his salary by 15%. Furthermore, GPS has eliminated merit-based salary increases for most of its headquarters employees.

President Obama has encouraged companies to cut pay -- particularly at the executive level. Some companies -- many of which are in Silicon Valley -- are complying. And others, like Boeing (NYSE: BA), are holding off on the pay cuts and going for the layoffs instead. This is a tricky problem and there's no doubt that CEOs are probably in a better position to make the call then Washington.

It's hard to hire engineers. So rather than fire them, many Silicon Valley companies are giving pay cuts to their executives and their employees alike. For example,

• Hewlett Packard (NASDAQ: HPQ) will cut its CEO's base salary by 20%, executives' pay by 10% to 15%, and most employees' salaries by 5%
• Applied Materials Inc., (NASDAQ: AMAT) the will cut executive pay 10% adding to an earlier 10% reduction
• Intel (NASDAQ: INTC) zeroed out its budget for merit pay or promotions, its CEO received e-mails from employees saying they would rather take pay cuts than lose a job or see co-workers terminated