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The exorbitant salary of a CEO comes out of the profit margin, does it not? The same profit margin that the wage of employees comes out of?
Yes that is correct. If they pay CEO less, their margin will improve; however that CEO may decide to go work for another company who pays more. Remember Steve Jobs? He left Apple and within a few years, we were counting the days it went under. If they get a bad CEO, they may not be able to even maintain the current margin.
See the Small Business Administration for details.
Quote:
Originally Posted by jojajn
What businesses run on such a low profit margin as that?
Any number of businesses. Grocery is generally less than 10%. Any number of restaurants. Any number of final assembly operations.
Ever see those cardboard displays in Target, Krogers Meijeirs and Wal-Mart?
Those are final assembly operations done by minimum wage workers. That is not a corporation, it is a small private partnership usually.
P&G used to do that in-house.....but they out-sourced it....the true and correct meaning of out-sourcing.
It's cut-throat competitive, especially around X-Mas, since you have Duracell and Ever-Ready and all the other battery makers with their cardboard displays full of batteries. You bid on those, against dozens of other competitors in the US.....
Small businesses make up:
99.7 percent of U.S. employer firms,
64 percent of net new private-sector jobs,
49.2 percent of private-sector employment,
42.9 percent of private-sector payroll,
46 percent of private-sector output,
43 percent of high-tech employment,
98 percent of firms exporting goods, and
33 percent of exporting value.
Source: SBA Office of Advocacy Frequently Asked Questions, September 2012
it sure does.. The difference of couse is the CEO's salary isnt subsidized by the taxpayers by way of government funded health insurance and welfare, and so many other programs left wing kooks celebrate.
Finally! You recognize that we tax payers are supplementing the wages/benefits of corporations, such as Walmart, that pay too low and fatten the wallets of the executives from tax payers.
Why? What is it that will keep them at minimum wage, but their own actions (or lack thereof)? What is it they face that is different from previous generations?
Global economy and all the manufacturing jobs that went to China. No generation before had to face that.
We should raise the minimum wage to about 12-14 an hour to allow people working 40 hrs a week to survive without food stamps. In many states the minimum wage and food stamp maximum overlap, meaning that the person making minimum wage and working 40 hours a week still qualifies for food stamps ( or rather needs tham to survive) which means that the state is indirectly subsidizing the EMPLOYER. 40 hrs per week x 8.00 = $320 . Try to survive on that. Fortunately at $320 / week which is $1,280 a month the person can still get some $200-300 a month in food stamps. This $200-300 a month is government subsidy to all those Walmarts and Targets as allows these employers to pay people less...
Last edited by risotto11; 01-22-2014 at 08:13 PM..
, my sister's employer recently cut every employees weekly hours by 1 hour per week. Sounds small, but since the average hours there are around 25, that is the equivalent of being sent home without pay for two weeks per year each.
I have no doubt if their average pay rate were forced up a dollar or two, layoffs would follow.
Finally! You recognize that we tax payers are supplementing the wages/benefits of corporations, such as Walmart, that pay too low and fatten the wallets of the executives from tax payers.
No, your subsidizing the employees because you want government to do so.. You arent subsidizing the corporations.
YOU support the government offering programs, and then whine when they are used..
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, my sister's employer recently cut every employees weekly hours by 1 hour per week. Sounds small, but since the average hours there are around 25, that is the equivalent of being sent home without pay for two weeks per year each.