CEO Cuts His Pay, Raises All Workers' Pay To $70,000 Per Year Minimum

[Las Vegas]

Not everybody drives a 12 year old Audi or snowboards as an outlet. If he wants to do that then thats great. I would not be happy as a Harvard Grad, Wharton grad etc etc...making the same as the cokehead mail room clerk. Sometimes people just aren't the same. Now if I had no skills....this would be a great place to work.

It looks like you've been trained to have contempt for working people, in an attempt to show reverence for the wealthy.

Hope I'm wrong about that.  Maybe you could explain.

[Bear232]

The CEO wants to spend half of his companies revenue on salaries.  Fine, that is his choice, not a smart move, but his choice.

Lets say his business takes a downturn in the next few years, economy, more competition, etc.  What will do then, demote himself or cut everyone to 25K per year?

[TheGrinch]

instead of raising the minimum wage they need to install a maximum salary cap just like pro sports. Once as a business owner you make the MAX you are now capped and have to distribute the profits of your company to the rest of your employees based on loyalty and performance metrics.


The problem lies NOT in the minimum wage but the fact that all executive level pay and most business owner pay is out of control.

Enforcing a salary cap on everyone would also create a better product, better service and a larger middle class. The min wage workers now work 100x as hard as if they make the owner more money and hit the cap everyone underneath profits. This way no matter what you do, flip burgers or an accountant you are 100000% focused on growing the company.

[Coach is Back!]

It looks like you've been trained to have contempt for working people, in an attempt to show reverence for the wealthy.

Hope I'm wrong about that.  Maybe you could explain.

What contempt? Once again there's nothing wrong with being wealthy. I don't know one person (even on here) who wouldn't want to be wealthy. As a matter of fact I would be willing to bet if they became wealthy their tune would change in a heartbeat.

[Las Vegas]

What contempt?

Well, let's see.  If you feel it's a good idea to refer to a hypothetical person (representing a worker in a discussion) as a "cokehead", it doesn't lead to any other conclusion that I can see.

Once again there's nothing wrong with being wealthy. I don't know one person (even on here) who wouldn't want to be wealthy. As a matter of fact I would be willing to bet if they became wealthy their tune would change in a heartbeat.

I don't know anyone that doesn't want to feel secure.

[Coach is Back!]

Well, let's see.  If you feel it's a good idea to refer to a hypothetical person (representing a worker in a discussion) as a "cokehead", it doesn't lead to any other conclusion that I can see.

I don't know anyone that doesn't want to feel secure.

I agree.

[Las Vegas]

I agree.

I hope headhunter wasn't really thinking that, because it will be easy for him to come back and explain it if that wasn't his intent.

If he doesn't come back and explain, though...it won't look too good for him.

[Coach is Back!]

I hope headhunter wasn't really thinking that, because it will be easy for him to come back and explain it if that wasn't his intent.

If he doesn't come back and explain, though...it won't look too good for him.

In certain industries such as the construction industry, that really isn't that far from the truth though. I know a lot that are alcoholics, coke and meth heads. Again it depends on the industry.

[Las Vegas]

In certain industries such as the construction industry, that really isn't that far from the truth though. I know a lot that are alcoholics, coke and meth heads. Again it depends on the industry.

How many wealthy people do you figure are using drugs from their doctors, and drinking?

[Coach is Back!]

How many wealthy people do you figure are using drugs from their doctors, and drinking?

No doubt a lot. But at the same they usually know when they need to seek treatment, can afford the treatment, etc. The labor worker usually doesn't have that luxury nor do most recognize it. Not saying all of course. 

[Las Vegas]

No doubt a lot. But at the same they usually know when they need to seek treatment, can afford the treatment, etc. The labor worker usually doesn't have that luxury nor do most recognize it. Not saying all of course. 

I completely agree.  The worker usually has to find a way to plod onward, because he'll end up losing everything in a heartbeat.  He's also much more likely to run into trouble, because he isn't protected by a 25-foot fence around the grounds of a mansion, with personal driver, minders, etc., etc.

[Las Vegas]

But anyway, I hope headhunter can clear up what he meant by that.

[avxo]

instead of raising the minimum wage they need to install a maximum salary cap just like pro sports. Once as a business owner you make the MAX you are now capped and have to distribute the profits of your company to the rest of your employees based on loyalty and performance metrics.


The problem lies NOT in the minimum wage but the fact that all executive level pay and most business owner pay is out of control.

Enforcing a salary cap on everyone would also create a better product, better service and a larger middle class. The min wage workers now work 100x as hard as if they make the owner more money and hit the cap everyone underneath profits. This way no matter what you do, flip burgers or an accountant you are 100000% focused on growing the company.

Just so I understand: do you think this "salary cap" is something a business should choose or something that should be mandated by law?

[TheGrinch]

Just so I understand: do you think this "salary cap" is something a business should choose or something that should be mandated by law?

should come up for a vote by the people of the united states... let everyone decide for themselves. Majority rules...

[Coach is Back!]

If it's a private (or even public) company there should be NO government involvement what so ever.

[avxo]

should come up for a vote by the people of the united states... let everyone decide for themselves. Majority rules...

Under what possible theory should "a vote by the people of the united states" be used to mandate a salary cap on private entities? How's that "everyone deciding for themselves"?

[TheGrinch]

Under what possible theory should "a vote by the people of the united states" be used to mandate a salary cap on private entities? How's that "everyone deciding for themselves"?

you could say that for every single time anyone votes for anything

[avxo]

you could say that for every single time anyone votes for anything

Answer the question: what justification exists to make the operation of private companies subject to the "vote" of anyone other than a shareholder?

[TheGrinch]

Answer the question: what justification exists to make the operation of private companies subject to the "vote" of anyone other than a shareholder?

the fact that the US is FUBAR and the middle class is non existent... too much money in the hands of too few.

Just like laws can be passed by the general public via ballot or its elected officials in regards to regulating how a public company operates its business, accounting, pays taxes, files reports, hires employees, fires employees, pays benefits, pension, etc.

This vote would be no different - ALL laws by which a private or public company does business is ultimately determined by a vote of some sort, be it a direct ballot of the majority or its elected officials

[Necrosis]

The CEO wants to spend half of his companies revenue on salaries.  Fine, that is his choice, not a smart move, but his choice.

Lets say his business takes a downturn in the next few years, economy, more competition, etc.  What will do then, demote himself or cut everyone to 25K per year?

Isn't this the point, companies and CEO pay are absurd. If this is money that would be stuffed into the pockets of the CEO and upper management it's not different. I guess you can choose to take an unfair portion of the "company" or you could pay fair wages.

I honestly think people are missing the value of taking care of your employee's, it elevates the whole business, they are the lifeblood.

Don't get me wrong, it may be too much etc he would know, but he is creating a loyal workforce which is hard to find today. Watching my father run a large company (somewhat like walmart), a store that generates 25million in revenue per year. The biggest issue was getting people to give a flying fuck, to show up on time, to not milk breaks etc. They raised the wages and benefits and have far less issue with turnover and negligence.

[TheGrinch]

Isn't this the point, companies and CEO pay are absurd. If this is money that would be stuffed into the pockets of the CEO and upper management it's not different. I guess you can choose to take an unfair portion of the "company" or you could pay fair wages.

I honestly think people are missing the value of taking care of your employee's, it elevates the whole business, they are the lifeblood.

Don't get me wrong, it may be too much etc he would know, but he is creating a loyal workforce which is hard to find today. Watching my father run a large company (somewhat like walmart), a store that generates 25million in revenue per year. The biggest issue was getting people to give a flying fuck, to show up on time, to not milk breaks etc. They raised the wages and benefits and have far less issue with turnover and negligence.

THANK YOU.. finally someone with a brain...!!

QFT


Give your employees a REASON to WANT to make the company work better and profit more. FEAR of losing your job is not a motivating factor.. To everyone please read that again.. FEAR IS NOT A MOTIVATING FACTOR

"You dont like the pay.. there's the door, dont let it hit you on the way out" .... does NOT lead to productive workers who care about the quality of the work they do

[Dos Equis]

Lots of things motivate people and fear is definitely one of them.  Part of the reason some employees show up on time and do good work is the fear of being fired.  You cannot use fear as the sole motivator, but it's an overstatement to say it's not a factor.

Overall, businesses that want to stay competitive will pay competitive wages and take good care of their employees.  Some businesses only care about the bottom line.  Some care about the product or service.  Some care about employees.  Some care about everything.

At the end of the day, if you don't like your pay, get another job, get an education or training, start your own business, etc.  Nobody is a slave. 

[avxo]

the fact that the US is FUBAR and the middle class is non existent... too much money in the hands of too few.

Objection. Assumes facts not in evidence.

Just like laws can be passed by the general public via ballot or its elected officials in regards to regulating how a public company operates its business, accounting, pays taxes, files reports, hires employees, fires employees, pays benefits, pension, etc.

This vote would be no different - ALL laws by which a private or public company does business is ultimately determined by a vote of some sort, be it a direct ballot of the majority or its elected officials

No, not different at all, except in that it's not a proper function to government to dictate to private companies how much to pay. Of course, if you're operating under the premise that everything is acceptable (as you seem to be) then... well... everything is acceptable. Sadly, too many people think like you which is why, on the Federal level, the Commerce Clause has been stretched so wide that just about everything fits through and on the local level, silly politicians think they can run other people's businesses.

[TheGrinch]

Objection. Assumes facts not in evidence.

No, not different at all, except in that it's not a proper function to government to dictate to private companies how much to pay. Of course, if you're operating under the premise that everything is acceptable (as you seem to be) then... well... everything is acceptable. Sadly, too many people think like you which is why, on the Federal level, the Commerce Clause has been stretched so wide that just about everything fits through and on the local level, silly politicians think they can run other people's businesses.

Both dems and repubs agree the middle class is disappearing - there is no arguing that fact

https://www.google.com/webhp?gws_rd=ssl#q=statistics+show+middle+class+shrinking



but its a function of government to decide how much private companies pay in taxes? Its 2 sides of the same coin

[2Thick]

It's his company, he can do whatever he wants within the law.

But I'd be curious to see if he's still got a business after 5-10 years or even 1-2 years in a low-margin business if he's paying everybody $70k when many should be making far less (when compared to their peers at other companies).

Buffett and Soros are hypocrites who are deceptive about their taxes and other things. Buffett has also always been very smart in that he's paid himself very little, spent very little, lived frugally, and invested and reinvested almost everything he's ever made.

As for CEO pay, if it's in stock appreciation, performance bonuses, and taken largely or entirely in stock / options in lieu of a huge cash guarantee every year no matter what, I have no issue with them making tens of millions or more a year. Let the sky be the limit if they choose a $1 a year base salary and take everything else in stock and options - hopefully they earn 8, 9, or 10 figures in a good year for the company and the shareholders. Better yet if they're actually BUYING stock themselves.

Why is everybody mad when Lloyd Blankfein makes $25-50 mil (mostly in stock / options, stock appreciation, and performance bonuses) when Goldman Sachs earns tens of billions and their stock is up double digits? Why aren't the libs also mad at athletes and celebs making similar money?