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Was his brother invested in the company? If so, the CEO had fiduciary responsiblity to investors.
How would anyone know exactly what fiduciary responsibility he has with his brother. The CEO cut his own pay. A person could never run out of reasons why to not give employees a raise, investors wanting a big share, jealous employees, etc. It's no wonder wages are stagnating and dropping.
How would anyone know exactly what fiduciary responsibility he has with his brother. The CEO cut his own pay. A person could never run out of reasons why to not give employees a raise, investors wanting a big share, jealous employees, etc. It's no wonder wages are stagnating and dropping.
The brothers restructured the company and while one had limited participation the other had limited compensation. The suit is over the compensation.
So if the CEO "cut his own pay" then he went against the restructuring agreement.
The suit asks for a full financial accounting of CEO pay.
The article says two of his most valuable employees left but it doesn't specify who designated them as valuable employees and why. Also another poster has posted a statement that actually shows the higher wage as a reason one of the employees left. He was worried the pay increase would tempt him from moving on to another company.
How do you know the ones leaving aren't the least productive. How do you know he isn't paying more to certain long time employees.
Read the article and try and use common sense. Simple logic would tell you that the ones leaving are the ones with the most options, the guy who was making an entry level wage who all of a sudden had his salary doubled or tripled will be there until the day they shut the whole place down and turn out the lights for good.
Read the article and try and use common sense. Simple logic would tell you that the ones leaving are the ones with the most options, the guy who was making an entry level wage who all of a sudden had his salary doubled or tripled will be there until the day they shut the whole place down and turn out the lights for good.
I still don't see why this is a problem. If the ones leaving had the most options doesn't that make them more likely to leave anyway. Are you saying they left for another similar paying job at a different company simply because they didn't like that others were making a similar wage. Also $70,000 is the floor, not the ceiling it would also tell me they were unable to convince there boss to give them a better deal.
The article says two of his most valuable employees left but it doesn't specify who designated them as valuable employees and why. Also another poster has posted a statement that actually shows the higher wage as a reason one of the employees left. He was worried the pay increase would tempt him from moving on to another company.
I'm certainly not a liberal but it sounds like a lot of jealousy. The mentality of a lot of people is they would turn down a raise if it meant their coworkers got one too.
It was noted in the article the higher paid workers got little.
I still don't see why this is a problem. If the ones leaving had the most options doesn't that make them more likely to leave anyway. Are you saying they left for another similar paying job at a different company simply because they didn't like that others were making a similar wage. Also $70,000 is the floor, not the ceiling it would also tell me they were unable to convince there boss to give them a better deal.
Both stated their reasons for leaving. You don't need to make up any.
At $70K min salary his reported revenue of last year couldn't support that. How do you think he planned to close that gap of company revenue vs labor cost ? 120 workers at $70K (not including anyone who made more) comes to $8.4 million. He only had $2.2 million in revenue the year prior.
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