This won't happen at the big corporations

[1979Shocker]

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

[wu_shizzle]

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

I'll admit I didn't read the article, but is he giving up stock options or just salary?

[DUShock]

In 2013 the average Fortune 500 CEO made 380 times the average employee. CEO: $12,300,000 or $5,913.46/hour Ave Non-Supervisory Employee: $32,368.42 or $15.56/hour

http://money.cnn.com/2013/04/15/news/economy/ceo-pay-worker/

In 2014 this number fell to 296 times the average employee. CEO: $15,200,000 or $7,307.69/hour Ave Non-Supervisory Employee: $52,100 or $25.05/hour

http://money.cnn.com/2014/06/12/news/economy/ceo-pay/

I would like to see the data set as there appears to be some rounding assumptions in the calculations. Regardless of the data set one thing is for certain that in 1980 the average CEO made 40 times the average employee and it is now significantly greater.

[SHOCKvalue]

In 2013 the average Fortune 500 CEO made 380 times the average employee. CEO: $12,300,000 or $5,913.46/hour Ave Non-Supervisory Employee: $32,368.42 or $15.56/hour

http://money.cnn.com/2013/04/15/news/economy/ceo-pay-worker/

In 2014 this number fell to 296 times the average employee. CEO: $15,200,000 or $7,307.69/hour Ave Non-Supervisory Employee: $52,100 or $25.05/hour

http://money.cnn.com/2014/06/12/news/economy/ceo-pay/

I would like to see the data set as there appears to be some rounding assumptions in the calculations. Regardless of the data set one thing is for certain that in 1980 the average CEO made 40 times the average employee and it is now significantly greater.

I'd say any study that has average worker salary go from $32K to $52K in a single year suffers from something critically amiss.

[1979Shocker]

I'll admit I didn't read the article, but is he giving up stock options or just salary?

That link only included a video. Here is a New York Times article on it, but I don't know if it mentioned stock options. I only glanced through it.

http://www.nytimes.com/2015/04/14/business/owner-of-gravity-payments-a-credit-card-processor-is-setting-a-new-minimum-wage-70000-a-year.html?_r=0

[jocoshock]

That link only included a video. Here is a New York Times article on it, but I don't know if it mentioned stock options. I only glanced through it.

http://www.nytimes.<br /> <br /> <...year.html?_r=0

From the article:

As Mr. Kahneman has explained it, income above the threshold doesn’t buy happiness, but a lack of money can deprive you of it.

[Kung Wu]

I read this article yesterday. It's a great read, and there's no reason to be skeptical. Just read it.

The CEO started the company in 2004 when he was 19 and now makes about $1,000,000 per year. He's going to reduce his own salary to $70,000 and raise the minimum that anyone in his company earns to $70,000. Obviously he's probably stashed away plenty, so he won't feel the effects of the lost $900,000+ for at least a year. He seems to be super financially conservative, so his own personal expenses are probably not extraordinary.

It's an interesting experiment. I bet he gets a LOT of job applicants from here on out. :)

[wu_shizzle]

What's the free pub worth?

Best. marketing. plan. Evar.

[SHOCKvalue]

It's an interesting experiment. I bet he gets a LOT of job applicants from here on out. :)

Exactly. Basic economics always win out. Supply and demand.

[wufan]

I'd say any study that has average worker salary go from $32K to $52K in a single year suffers from something critically amiss.

In one article they take CEO pay as calculated by salary, bonus, stock options, AND stock options exercised (that's double dipping two years worth of stock earnings IMO) versus the average union workers pay ($30K+). In the other article it's the same CEO info vs average non-supervising employee pay ($50K+).

The CEO pool is the top 50 by sales in one instance (big bonus year) versus the 350 highest earners in another (again probably big bonuses).

In one instance, the estimate was put together by a left leaning think tank (bias) and in the other by a union lobbying group (bias). In both instances, the employee bonuses (probably 5% average) and the benefits (probably 20-30% average) are left out, causing a huge skew which would drop the actual difference (along with stocks exercised removed) down to about 100 times the average employee earnings. When you look at the average CEO (not the wealthiest) in an average year (where bonuses are minimum) you are probably looking at an average earnings of 10 times the earnings of all employees, and 20-25 times that of a union worker.

Also, they are comparing CEOs of the best company's versus average national information. Who's to say that these company's don't pay great?

[wu_shizzle]

Is there more to the story?

http://www.getreligion.org/getreligion/2015/4/21/is-there-a-religion-ghost-in-story-of-ceo-who-cut-his-own-salary-to-pay-all-employees-at-least-70000