CEO Slashes Pay to Raise Company 'Minimum Wage' to $70,000

[WNYresident]

CEO Slashes Pay to Raise Company 'Minimum Wage' to $70,000

A Seattle business owner is dropping his salary from about $1 million to $70,000 to help pay his workers a minimum of $70,000, too.

http://www.nbcnews.com/nightly-news/...0-428053059671

[Jeff]

CEO Slashes Pay to Raise Company 'Minimum Wage' to $70,000



http://www.nbcnews.com/nightly-news/...0-428053059671

http://www.forbes.com/sites/kathrynd...-wage-earners/

CEOs Earn 331 Times As Much As Average Workers, 774 Times As Much As Minimum Wage Earners

[leftWNYbecauseofBS]

CEOs Earn 331 Times As Much As Average Workers, 774 Times As Much As Minimum Wage Earners

As with everything...the numbers can be worked to make a point. Additionally, most people can't be bothered to look at or are too stupid to understand the whole picture.

If you're a coffee shop owner and you have 5 employees, to make 331 times more than your employees would be silly concept. You would be doing good 230 cups a day and $250k a year in revenue. Source. 2011 Coffee Statistics Report.

Excluding overhead and just looking at wages to staff 2 people at a time for 84hrs a week of operation (6a - 6p)...$15/hr for those two over the year (8736hrs) is $131,040. This does not include anything related to benefits, insurance or taxes. Depending on where your located, your rent and taxes could easily eat up every penny of the difference and in reality have you go in debt.

Then you look at these large corporations. If you're the CEO of a company like Target you have $72.6 Billion in annual revenue and 366,000 employees, to pay yourself on a similar scale to your employees would be just as silly. Who the hell are you going to find that is capable of managing 366,000 employees and operation costs like that without paying a prime? The answer is nobody. The problem with these CEO stats is how little context is provided.

Take a look at the CEOs mentioned in the report. You have WalMart (2.2 million employees against 485.6 Billion in revenue), Darden Restaurants (200k + employees against $7.9 Billion in revenue), Reynolds American (5,400 employees against $8.2 billion in revenue) and Kellogg's (30,200 employees against $14.7 Billion in revenue).....

Making things worse are the idiots who look at an employee at a coffee shop owned by the guy down the street and a clerk at Target the same. The scale is completely different but the minimum wage is a one size fits all. So for every liberal complaint about CEOs they completely miss the mark on the labor market.

There are less than 1,000 companies in the US with more than 10,000 employees.
There are almost 28 million companies with less than 500 employees.
>> Of this 28 Million, almost 6,000,00 companies in the US with less than 4 employees.

So when people talk about pay for employees and use companies that make up .00003% of the market they look like idiots to me.



If you want to talk about employee income..so be it. If you actually want to solve employee income without destroying 99% of the companies in the US, you need to start with taking the one size fits all spectrum off the table. Of course this does not work for the Unions, which put out this report, as one size fits all is a core tenant of theirs.

If you want to solve the issue you need to focus on the small businesses. You need to focus on the individual. Significantly simplify the tax code for companies that post less less than $1,000,000 in revenue. Significantly simplify the labor regulation for these companies as well. Increase the burden to the employee who works for these small business and decrease the burden for employees who work for large companies.

Or we could just talk about CEO compensation with no context.

[Jeff]

As with everything...the numbers can be worked to make a point. Additionally, most people can't be bothered to look at or are too stupid to understand the whole picture.

If you're a coffee shop owner and you have 5 employees, to make 331 times more than your employees would be silly concept. You would be doing good 230 cups a day and $250k a year in revenue. Source. 2011 Coffee Statistics Report.

Excluding overhead and just looking at wages to staff 2 people at a time for 84hrs a week of operation (6a - 6p)...$15/hr for those two over the year (8736hrs) is $131,040. This does not include anything related to benefits, insurance or taxes. Depending on where your located, your rent and taxes could easily eat up every penny of the difference and in reality have you go in debt.

Then you look at these large corporations. If you're the CEO of a company like Target you have $72.6 Billion in annual revenue and 366,000 employees, to pay yourself on a similar scale to your employees would be just as silly. Who the hell are you going to find that is capable of managing 366,000 employees and operation costs like that without paying a prime? The answer is nobody. The problem with these CEO stats is how little context is provided.

Take a look at the CEOs mentioned in the report. You have WalMart (2.2 million employees against 485.6 Billion in revenue), Darden Restaurants (200k + employees against $7.9 Billion in revenue), Reynolds American (5,400 employees against $8.2 billion in revenue) and Kellogg's (30,200 employees against $14.7 Billion in revenue).....

Making things worse are the idiots who look at an employee at a coffee shop owned by the guy down the street and a clerk at Target the same. The scale is completely different but the minimum wage is a one size fits all. So for every liberal complaint about CEOs they completely miss the mark on the labor market.

There are less than 1,000 companies in the US with more than 10,000 employees.
There are almost 28 million companies with less than 500 employees.
>> Of this 28 Million, almost 6,000,00 companies in the US with less than 4 employees.

So when people talk about pay for employees and use companies that make up .00003% of the market they look like idiots to me.



If you want to talk about employee income..so be it. If you actually want to solve employee income without destroying 99% of the companies in the US, you need to start with taking the one size fits all spectrum off the table. Of course this does not work for the Unions, which put out this report, as one size fits all is a core tenant of theirs.

If you want to solve the issue you need to focus on the small businesses. You need to focus on the individual. Significantly simplify the tax code for companies that post less less than $1,000,000 in revenue. Significantly simplify the labor regulation for these companies as well. Increase the burden to the employee who works for these small business and decrease the burden for employees who work for large companies.

Or we could just talk about CEO compensation with no context.

I'm not saying that anything should be done.

Also I think its silly for you to sit there and say that the CEOs or Target and Walmart are managing all of the companies employees. You can make your point about there workload without resorting to nonsense like that.

The fact is that the delta between CEO and worker pay has increased almost 1000% since the late seventies. Are they doing 1000x more work then 30 years ago? Are employees doing 1000x less work?

[Save Us]

Who/what determines CEO pay?

[nickelcityhomes]

Who/what determines CEO pay?

Obviously this should be a function of the government. We can't allow shareholders to make decisions.

[leftWNYbecauseofBS]

I'm not saying that anything should be done.

Also I think its silly for you to sit there and say that the CEOs or Target and Walmart are managing all of the companies employees. You can make your point about there workload without resorting to nonsense like that.

While CEOs of Target and Walmart are not directly managing all of the employees...they are responsible for each of them. The higher you get the closer you are to the door.

The fact is that the delta between CEO and worker pay has increased almost 1000% since the late seventies. Are they doing 1000x more work then 30 years ago? Are employees doing 1000x less work?

There you go again with general terms. You are looking at just the compensation of a CEO to the employees. Below is the history of Walmart. In 1979 they had sales of $900M. Lat year did $485B in sales. While the CEO is not doing 1000% more work, he is responsible for 44,900% more of a company regarding revenue.





Beyond this, if you want to talk about Walmart or large corporations...that's fine. I am no fan of theirs. The problem is when people lump the compensation of a WalMart CEO into the conversation of a general low skilled worker. Generalizations are for the lazy and stupid.

I know the problems that these large companies create. But I also accept they employ people who simply would never be able to get a job with a small business. Do you honestly think someone like that coffee shop owner is going to hire someone who lacks basic social and cognitive skills? The answer is a resounding NO.

I would be happy if Walmart went away and we went back to the days of the local owner for most everything. But I can excel in that economy, both as a worker and a consumer, but the reality is many can't. That needs to be addressed.


I also know that many consumers would reject a level of service above what a Walmart provides simply because they are unwilling to pay for it. What a lot of people do not grasp is the same scale that allows a CEO to be paid 1,000X more than a person stocking the shelves is the same scale that allows a minimum wage worker to own a flat panel tv. Back in the halcyon days that so many cry for...the guy who was making closer to what the CEO made did not even come close to owning the same amount of luxury items the CEO made.

I have said this before but the people who cry that the middle class is being destroyed have zero understanding of what the middle class really is. You seem to be one of these people. If workers want to return to that time...they need to return all of their sh*t that they now can afford.

The economy that allows a Walmart CEO to make $4M+ a year is the same economy that allows a worker at burger king to own a LCD TV.
The economy that allows the Apple CEO to make $8M+ a year is the same economy that allows a 14 year old with a single parent to own an iPhone.
The economy that allows the Delta CEO to make $7M+ a year is the same economy that allows a family to fly to Florida for vacation each year.
The economy that allows the Hilton CEO to make $2.5M+ a year is the same economy that allows someone to stay at a 4star hotel rather than a motel.



You want higher wages and less of a delta between the bottom tier of employees and the CEO? Fine. Give back all of your sh*t. Return the TV, install the wall phone from MaBell and drive to Disneyland and stay in the Howard Johnson off the 77 South.