Posted on 04/29/2014 1:40:34 PM PDT by MichCapCon
As a union tries to make CEO pay an issue, others question the comparison.
Economist Antony Davies said that if McDonald's were to not pay its CEO or all senior management and instead divide those tens of millions of dollars among the minimum wage workers, each employee would end up earning about 1.5 cents more per hour.
But some groups are using executive compensation to try and drive a public discussion. The AFL-CIO launched a website that is critical of some salaries, including the heads of some Michigan companies.
The union reports that a minimum wage employee would have to work 528 hours to equal one hour of compensation of John A. Bryant, the CEO of Kellogg Company. Bryant holds a bachelor’s degree from Australian National University and a MBA from the Wharton School of Business at the University of Pennsylvania. He lives in Kalamazoo and is a Chartered Accountant of Chartered Accountants in Australia. He serves on the board of directors of three major food organizations.
His total compensation of $7.9 million is being compared by the union to the earnings of teenagers in high school. MLive picked up on the union website and did a story on it.
Charles Owens, state director of the National Federation of Independent Business, called the union website more class welfare from the liberal progressive front.
“Of course everyone making the minimum wage is just as qualified to run a multimillion dollar company as any CEO,” Owens said sarcastically. “In the quest to make everyone equal, the liberals must eliminate experience, education, risk and talent when comparing salaries and pay. It is highly likely that those in the position of leadership for major companies didn't sit around and wait for the government to give them a raise.”
Davies, whis is an associate professor of economics at Duquesne University, made comparisons of the McDonald's executives and its minimum wage employees.
“Don't confuse the value of functions with the values of the individual people,” Davies said. “McDonald's couldn't operate without a CEO or without people who cook burgers. The job the CEO performs is worth about $10 million annually to McDonald's. The jobs the minimum wage workers perform are worth about $35 billion. So the jobs the minimum wage workers perform are worth around 3,500 times what the job the CEO performs is worth. The kicker is that only one person can perform the CEO job at a time while 1.7 million people can perform the minimum wage jobs at a time. So, on an individual basis, the individual minimum wage workers are worth less than the individual CEO.”
What if we eliminated all federal welfare payments—aid to the non-productive AND the corporate bailout/subsidies/cronyism?
How much money could go back to each working taxpayer?
Weapons grade stupid.
They ought to raise the price of a Big Mac to $9.95.
“You want fries with that?” $6.99 extra.
If they tripled the menu prices, that would allow Micky D workers to earn a living wage, right?
But - oops - nobody would eat there anymore so... I guess that theory sucks, huh?
Well, you just touched on economics 101.
To pay these people some allegedly good living wage, fast food places would have to raise the prices of the products they sell substantially. But if the price rises, then customers who buy this food will not hit the drive through as often. Any business owner knows there is a price which his/her customers will not pay for their products.
About $1 trillion each year.
What if we eliminated all federal welfare payments—aid to the non-productive AND the corporate bailout/subsidies/cronyism?
How much money could go back to each working taxpayer?
___________________
In unfunded future liabilities it is about $64 trillion. That’s right, SIXTY-FOUR TRILLIION.
Economics 101 also tells us also that wages and salaries are proportionate to education and skills.
And that if you want the minimum wage to be $15.00 per hour, be prepared to see other income levels increase as well.
And as income levels increase across the board - so do prices for goods and services. And in a healthy robust economy - we could sustain that.
But in our Obamaconomy? That just means more layoffs and higher unemployment.
great statistic. i advise all cfos to include it in their financial reporting.
Well whaddya know....Duquesne University actually employs somebody who can do math!
Just close all the McDonalds.
And a progressive says “Well why don’t we do it then?”
What if the AFl-CIO eliminated all union officials wages? How much could union dues be cut and how how much more money would be in the workers pockets? But here is a better question, how much more money would union workers have if unions were not allowed to buy elections?
In 1969 minimum wage was $1.45 an hour. A new Chevelle
SS-396 was around $3,600. Minimum wage has increased by about 5. That same Chevelle can be worth as much as $100,000 today. That same worker is dead today. Huh?
“me knows math, but not good enuf to figure money. but me buddy tommy make less than big shot. tommy shud make az much money as big shot! me say not fair”
~AFL-CIO director
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