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I applaud the CEO for putting his money where his mouth is. But before he tries something like that again, maybe he can take some time and learn about basic economics, and human nature, and the difference between equality of opportunity and equality of outcomes.
More like putting his employees money where his mouth is.
I don't understand why you call it comedy? His intentions were good, and he used his own high salary to try to do it. We should all be sad that it failed, not take glee in it. I don't get people anymore.
We should not all be sad. Some people should learn from it. This guy was a CEO. Did he not talk to his CFO?
This was predicted. It was stupid on his part and now the company is in danger so instead of being a bleeding heart, he should have been a frugal CEO and worked not to appease the social left by throwing away the potential of a company and if the company fails, ALL THOSE JOBS and instead grown the company.
What you don't get is right in front of you. A company needs to make money to stay in business and if the company puts more money into salaries in some PR stunt, then it goes out of business.
So if it play out as it looks like it will, instead of all those people making $70,000 a year, they'll make nothing.
Gotta hand it to the guy for trying something different. Hope it doesn't cost him his business. Better luck next time?
Gotta hand it to the guy? He didn't try anything new, the US Government does it all the time and look at the escalating amount owed. This was a PR Stunt. Nothing more. He gambled and is losing.
Ask his employees if they lose their jobs how much they liked it. No, don't ask them, ask their families.
Hey, it's an experiment. A lot of experiments fail. Kudos to the guy for trying something different, that he felt would lead to better productivity from loyal and grateful employees. If you are going to blame him you should blame the entire board of directors of his company, too.
Wow, I'm saddened to hear about this; and equally disappointed (but I really shouldn't be by now) with all of the hatred and animosity some of you are throwing at the CEO. By the way, if you read the article from the OP there is a bit of nuance regarding the Finance Mgr who quit: she was on board with the plan but wanted it implemented in a much smarter fashion. I suspect the CEO got swept up in the good press about himself and let it get to his head. It's unfortunate that if the company shuts down several people will lose their jobs, but that's life. Certainly nothing to gloat over and if you are doing just that, then you are a small, petty human being.
If you happen to be a Christian, like so many conservatives posting probably are, then you're certainly not replying in a Christ-like fashion. One day, a conservative christian (small c's intentional) is going to have to explain the hypocrisy they flaunt with such abandon. How can you have so much hate for someone who just wanted to make his employees' lives better?
I did want to reply to some of the posts on here:
Quote:
Originally Posted by jstriding
Part of my problem with this CEO's approach is what was said by one of the senior staff there, who quit. She was criticized and labeled "sour grapes" or "your pay wasn't decreased why are you upset over your peers' increase in pay".
People who criticize this fail to notice that this senior person who worked her way up to become a finance manager spoke about HOW MANY HOURS she had put into this company over the years AT THE EXPENSE of her personal life. This is typical of start-ups, but it shouldn't be (for too long, at least).
Thus I'm more sympathetic to this person who quit, because she had invested years of her time above and beyond what was the norm, as part of her paying dues to BUILD a start-up so that she may perhaps one day earn justifiable reward (equity in the company if it were to go public, or higher equitable pay if it stayed private).
However, by raising the salary ceiling so high, this severely reduces the company's ability to REWARD these workers who have been there from the very beginning, who busted their rears to keep this company above water knowing that this is the nature of start-ups, but who expected that their loyalty and invested time over the years would amount to something more significant than a $9000 increase in salary from $41K to $50K while another coworker who arrived 3 months ago who had not yet invested those hundreds of additional (NONPAID OVERTIME) hours get a $25000 raise to the same $50K.
People aren't talking about the intangibles that the senior employees have invested in making this company competitive. They're mostly bashing the employees who left for being spoil sports. Then people bash companies for not rewarding employee loyalty with equitable incentives or compensation; in this case the CEO's actions have indeed eroded the company's loyalty to the workers who have already invested significantly to its growth over the past 5+ years.
I actually agree with a lot of your post, but the bolded part strikes me as a little too sympathetic to the finance mgr. She made the choice to sacrifice time with her family for the job. That's part of being an adult. If anything she'll be fine going forward. I'm pretty sure her resume looks pretty good by now and she's only 26.
Quote:
Originally Posted by hawk55732
Im going to nit pick here but minimum wage was never meant to be a living wage.
It actually was, that's what it was supposed to be from the start, but it was designed to require congressional approval before increases so the wage never kept up with the COL.
LOL, people need to study history in this country. It's laughable how many short sighted policy decisions are supported by historically flawed assumptions. Franklin D Roosevelt passed the Fair Labor Standards Act of 1938. During his innauguration speech he stated: "no business which depends for existence on paying less than living wages to its workers has any right to continue in this country."
Quote:
Originally Posted by bus man
I applaud the CEO for putting his money where his mouth is. But before he tries something like that again, maybe he can take some time and learn about basic economics, and human nature, and the difference between equality of opportunity and equality of outcomes.
Quote:
Originally Posted by MTQ3000
Hey, it's an experiment. A lot of experiments fail. Kudos to the guy for trying something different, that he felt would lead to better productivity from loyal and grateful employees. If you are going to blame him you should blame the entire board of directors of his company, too.
Its his money. Not his employees. Its not their money until they do the work and he pays them.
A lot to learn. Money is earned when work is done. Payments for work done is paid in arrears. That means he puts his employee's money where his mouth is.
You work one hour, you earned the compensation for that hours' work. The reason you don't get paid every hour is for practicality.
It isn't his money if any work was already performed but not yet paid for.
He did cut his salary to try to make this a reality. But he failed to consider why some people work and what motivates them. Some have no problem earning minimum wage and having a lifestyle that goes with it. Others will work their arses off to achieve more and earn a higher standard of living.
The latter are what propels a business. If you don't recognize that and reward them, they will go elsewhere where they are recognized appropriately.
Those that first came to this country quickly found it that giving everyone the same does not work. The lazy will continue to be lazy. The hardworking felt slighted. Why should I work so hard to support someone else? Production went down and people began to starve. Reward the hardworking. Allow them to keep and sell their abundance. Those that don't work, don't eat.
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