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To: nicollo
Does anyone know off hand how much Mr. Ford earned in 1914? I often hear the stat about how much CEOs make vs the average pay for their employees, but how does this compare to the big industrialists of the late 19th and early 20th centuries?
148 posted on 09/21/2006 6:46:19 PM PDT by Stegall Tx (Pray often. Aim high.)
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To: Stegall Tx
Does anyone know off hand how much Mr. Ford earned in 1914?
Great question! In 1914, it was said that Ford would to divide $10 million in profits amongst 26,000 workmen -- women excluded. That "profit sharing" is what constituted the "Five Dollar Day" -- with the low-scale $2.60 daily rate doubled by the sharing of profits. Estimated profits for Ford in 1913 were $25-$30 million.

I don't know how much Henry paid himself in salary, but I do know that a good manager would make $50K+ in the auto industry. After the pofit sharing scheme, the annual wage for Ford line workers came to $600-1200, give or take how the "profit sharing" was distributed. A basic Model T in 1914 cost around $600. These workers were not automobile consumers, and noone at the time expected them to be.

Be aware that daily pay in the auto and other industries count for little in terms of annual wages, b/c work was seasonal.

159 posted on 09/22/2006 4:02:41 AM PDT by nicollo (All economics are politics)
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