US CEOs Underpaid

CLAPTON

PasturesNew wrote: »

A billionaire business owner was once told by a small business owner "Yes, but you can afford to pay your little people more...." and he replied "... it's because I DO pay them more that the company is so successful"

If it were true, then I would image it would be common knowledge in the business world and business people would rush to pay people more and so massively increase their profits.

However, I do accept that it seems to be widely believed by people who don't actually run a business. (BBC, Charity sector, low pay pressure groups, socialist politicians, etc)

Graham_Devon

CLAPTON wrote: »

If it were true, then I would image it would be common knowledge in the business world and business people would rush to pay people more and so massively increase their profits.

It is.

Aldi and Lidl use a variation of this model. Vast swathes of companies across the continent (specifically in Germany) use this model to some extent.

John Lewis uses the model. Zara uses this model. Coral I believe use that model. Ikea are moving over to a similar sort of model.

Loads of SME's use the model.

CLAPTON

Graham_Devon wrote: »

OK, and the underlying point of this thread is that these people you are describing are underpaid and should get more?

What exactly is wrong with this idea that if the CEO is part of a team which steers the company towards increeased profits, the CEO's pay goes up if the workers pay goes up?

A 10% wage rise across the board would see the £6.50 worker get a 65p an hour rise. The CEO would get a £13 an hour rise.

There is absolutely nothing stopping the CEO (or any other worker for that matter) investing in the company for greater returns. Will give them an extra incentive to do even better.

I fail to see why this would be such a bad thing for a company - and I doubt you could give me a reason as to why it's a bad thing either.

There are very successful companies who already run similar type models.

The original post by Generali was a tongue in cheek bit about CEO pay.
Obviously the 'conclusion' is nonsense based on a silly premise.

The relationship between profits, sustainability, execute and work pay is complicated.

I think that overall, it is best left to the market: if it is so that companies that pay rubbish wages, go out of business them let's rejoice at their demise
if companies that pay high wages to their cleaners, prosper them let's celebrate their success.

artificial nonsense like minimum wages, income ratios of CEO to lowest paid worker just lead to lots of tome wasted and equally artificial mechanisms to get round the situation.

Graham_Devon

CLAPTON wrote: »

artificial nonsense like minimum wages, income ratios of CEO to lowest paid worker just lead to lots of tome wasted and equally artificial mechanisms to get round the situation.

Oh, I see now why Aldi are doing so badly in this country, wasting all their time on this artificial nonsense.

CLAPTON

Graham_Devon wrote: »

It is.

Aldi and Lidl use a variation of this model. Vast swathes of companies across the continent (specifically in Germany) use this model to some extent.

John Lewis uses the model. Zara uses this model. Coral I believe use that model. Ikea are moving over to a similar sort of model.

Loads of SME's use the model.

Fantastic , the free market producing the right result without any legislation what so ever.

Graham_Devon

CLAPTON wrote: »

Fantastic , the free market producing the right result without any legislation what so ever.

CLAPTON wrote: »

artificial nonsense like minimum wages, income ratios of CEO to lowest paid worker just lead to lots of tome wasted and equally artificial mechanisms to get round the situation.

From artificial nonsense to "the right result" within the blink of an eye.

Seems you are tieing yourself up in knots here.

wotsthat

Graham_Devon wrote: »

It is.

Aldi and Lidl use a variation of this model. Vast swathes of companies across the continent (specifically in Germany) use this model to some extent.

John Lewis uses the model. Zara uses this model. Coral I believe use that model. Ikea are moving over to a similar sort of model.

Loads of SME's use the model.

So they're more profitable by virtue of paying their staff more?

I'll mention this to my boss on Monday. If they give me an extra £10k how much should they expect profits to increase by?

wotsthat

Graham_Devon wrote: »

From artificial nonsense to "the right result" within the blink of an eye.

Seems you are tieing yourself up in knots here.

I think the batteries in your irony detector need replacing.

If there's a well known model where profits are directly related to staff pay why on Earth is there the need for a minimum wage?

CLAPTON

Graham_Devon wrote: »

From artificial nonsense to "the right result" within the blink of an eye.

Seems you are tieing yourself up in knots here.

no

a belief that the market is better to decide these sort of things rather than government rules: if it works for the company then fine; if it doesn't then that's fine too

I don't ascribe Aldi et al success to their pay policy and indeed I don't actually know what it is.

The few times I've been in them, there seem to be very few staff who seem to work incredibly hard.

Graham_Devon

wotsthat wrote: »

I think the batteries in your irony detector need replacing.

If there's a well known model where profits are directly related to staff pay why on Earth is there the need for a minimum wage?

I think you stiop abusing your strawman, he's getting tired.

Who said anything about profits being directly related to pay? I

I note you didn't question Genarli and ask him to prove a model where profits are directly related to the CEO. Hypocrit.

Profits come from a combination of many factors.