Sunday, October 23, 2016

Brutal takedown of CEO wage myth - Re-Blog

THE MISLEADING CLAIM: These 8 CEOs get paid so much that they clearly can afford to raise their worker's wages to $15 per hour.
THE REALITY: As we'll demonstrate below, the math proves this claim is questionable, at best.
JC PENNY:
• 114,000 employees [1]
• CEO pay: $4,629 per hour per the meme.
Each employee could get a $0.04 per hour raise if the CEO's pay were entirely eliminated.
CHIPOTLE:
• 53,090 employees [2]
• CEO pay: $13,489 per hour per the meme.
Each employee could get a $0.25 per hour raise if the CEO's pay were entirely eliminated.
Note, part of why Chipotle's CEO (Steve Ells) is so highly compensated is because he holds TWO positions, rather than just one, also serving as Chipotle’s chairman. [3]
Another interesting point? Chipotle ALREADY pays its workers more than comparable fast food outlets, such as Taco Bell, Chick-fil-A, McDonald's, Wendy's, and Burger King. [4]
DUNKIN DONUTS:
• 260,000 employees [5]
• CEO pay: $4,889 per hour per the meme.
Each employee could get a $0.01 (technically 0.018) per hour raise if the CEO's pay were entirely eliminated.
DOMINOS:
• 11,000 employees [6]
• CEO pay: $3,571 per hour per the meme.
Each employee could get a $0.32 per hour raise if the CEO's pay were entirely eliminated.
WENDY'S:
• 31,200 employees [7]
• CEO pay: $3,465 per hour per the meme.
Each employee could get a $0.11 per hour raise if the CEO's pay were entirely eliminated.
WAL-MART:
• 2,200,000 employees [8]
• CEO pay: $2,704 per hour per the meme.
Each employee could get a $0.00 (technically 0.001) per hour raise if the CEO's pay were entirely eliminated.
STAR-BUCKS:
• 191,000 employees [9]
• CEO pay: $10,285 per hour per the meme.
Each employee could get a $0.05 per hour raise if the CEO's pay were entirely eliminated.
MACY'S:
• 166,900 employees [10]
• CEO pay: $7,904 per hour per the meme.
Each employee could get a $0.04 (technically 0.047) per hour raise if the CEO's pay were entirely eliminated.
CONCLUSION:
Considering that this meme took annual CEO pay and simply divided it up into 40 hour work weeks despite the fact that CEOs of top firms routinely work over 40 hours a week [11], it already was guilty of significantly over-inflating CEO's hourly wages. But even if one takes the meme's inaccurate estimates at face value, it's conclusion proves to be entirely false, never the less. You could literally eradicate 100% of CEO pay from each of these companies and never even come close to a 50 cent per hour raise for workers, never mind nearly doubling minimum wages to $15 per hour. This claim is demonstrably false.
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ADDENDUM:
Before one protests that our counter-argument is off because we counted ALL employees rather than focusing only on those paid under $15, understand that this point - while valid - raises only a very small discrepancy.
It wouldn't matter if one adjusted the math to apply it to half or even one-third the workforce, because one would still struggle to add a dollar to worker's pay.  For instance, take Wal-Mart for example. Their pay increase would each be a (rounded down) 0 cents per hour raise if applied to all workers, but if we adjusted the figures to distribute the CEO's pay amongst workers presently earning less than $15, as to bring it up to the hypothetical $15 minimum, it still wouldn't be more than a few cent raise.  Therefore, even though our rebuttal is a rounded off estimate, it's one that is so significantly far away from the original misleading claim that it becomes obvious Occupy Democrats was very wrong.
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Sources:
[1]
http://www.macroaxis.com/invest/ratio/JCP--Number_of_Employees
[2]
http://www.macroaxis.com/invest/ratio/CMG--Number-of-Employees
[3]
http://www.bloomberg.com/news/articles/2014-05-15/chipotle-investors-slam-executive-compensation-at-annual-meeting
[4]
http://www.businessinsider.com/how-much-fast-food-jobs-pay-2013-7#!I5stQ
[5]
http://www.bostonjobsource.com/dunkin.html
[6]
http://www.macroaxis.com/invest/ratio/DPZ--Number-of-Employees
[7]
https://www.macroaxis.com/invest/ratio/WEN--Number-of-Employees
[8]
http://news.walmart.com/walmart-facts/
[9]
http://www.macroaxis.com/invest/ratio/SBUX--Number-of-Employees
[10]
http://www.macroaxis.com/invest/ratio/M--Number-of-Employees
[11]
http://www.bls.gov/ooh/management/mobile/top-executives.htm


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