Forum Post: The Solution to All This Complication is Relatively Simple
Posted 11 years ago on Oct. 6, 2011, 6:40 p.m. EST by TheSQLWhisperer
from New York, NY
This content is user submitted and not an official statement
The solution to all your complicated requests lies in a very simple bill for Congress. The bill should state simply that, if any paid employee, in any American business, makes more than 82% of anyone else in the company, the employee making 82% more than the others -AND- the company itself has to pay an additional 18% more in taxes.
Highest Salary in the Company | Lowest Hourly Wage Would Be:
100000 | 8.65 200000 | 17.30 500000 | 43.27
1000000 | 86.54 10000000 | 865.38
McDonalds CEO made $3.8 million, so minimum wage at McDonalds should be $328/hour. I'm a GM for a McDonalds, so I can tell you this: If I have two people working in my store (not counting me) for all the hours of operation, my store will make vastly less than $0 for the day.
Let's assume that Skinner takes a dive and cuts his salary to $200k (vastly underpaid for the amount of work organizing and implementing plans for a $6Billion business) so wages are 17.30/hour. I need a minimum of around 120 man-hours for a slow day at my store, so that would be $2076 in labor for the day. To maintain profitability, labor costs should be less than 20% of total sales (the rest going to utilities, food cost, paying the mortgage on the property, and our emergency fund for the next time the shake machine breaks - a $10,000 repair - or the parking lot needs repaving or the computer system needs to be upgraded - $20k) I would need to make $10,000 that day. For a slow day. The best day of sales I have ever seen was less than $8000, and we had waaay more than 120 man-hours on hand that day (and needed every second of it!)
Also, by the way.... if this became law, 90% of McDonalds would close down, since most are franchised, and the franchise owners invested several million in order to open the store and begin business and expect a decent return on the investment.
vamptvo -Thanks. And yes, I compressed two pages into something short enough for people to read in a few seconds, or tried to, anyway. Also, CEO's are typically given a yearly salary, and the people actually doing the work, keeping the company afloat, are almost always paid by the hour. Hence the table heading.
This concept could work. This simple concept could save America.
A very interesting and promising idea, but it obviously needs some fleshing out on the actual policy side. Namely, you are comparing hourly wage directly to yearly salary, which is kind of apples to oranges. Still, the idea of requiring companies to combat a culture of millionaires making giant bonuses while cutting pay for their employees is cool, and if implemented in a fair way (i.e. fair to BOTH the highest and lowest paid employees) it could make a difference.
That posted very ugly. Try this: Highest Salary in the Company | Lowest Hourly Wage Would Be: 100000 | 8.65, 200000 | 17.30, 500000 | 43.27, 1000000 | 86.54, 10000000 | 865.38.
Hopefully, you can read that better.