4 ms·

Yeap - A real shame if the CEOs had to take a lower paycheck in order to pay their workers more. Yeap - a real shame.

ams6110 9y ago
There are probably some exceptions but in most businesses you could eliminate the CEO salary altogether and there wouldn't be enough savings to give "the workers" more than a very small raise.
- pm24601 9y ago
  [Former] Wells Fargo CEO John Stumpf made 473 times more than the salary of a median employee, according to Bloomberg. That ratio of CEO-to-employee pay puts Wells Fargo at No. 33 among S&P 500 companies and third highest among financial institutions on the list. He earned $19.3 million in total compensation last year. Add in the other highly paid C-level people in WFC and Split that with the median paid and below employees would mean about $3000/year. For a full-time teller making about $30K/year that is a 10% salary difference. I do call that much more than a "small" raise.
  - deleted 9y ago
    [deleted]
  - cottonpicker 9y ago
    But the median-wage Wells Fargo employee is a crook who defrauds Wells Fargo employees. It is not right that those employees should profit from abusing customers. Clearly, top-tier executives should be the ones to profit from this.
    - pm24601 9y ago
      Correction: > Wells Fargo employee is a scapegoat
  - kelnos 9y ago
    Right, but you wouldn't split it equally. You'd split it proportionally based on what each employee actually makes, so the $30k/yr employee would get less than a $3k raise.
kelnos 9y ago
I'm of course fine with CEOs getting lower pay, but is that a realistic outcome?
- pm24601 9y ago
  Yes it is.
  - kelnos 9y ago
    Is it actually realistic, or would you just like it to be? Executives obviously resist downward motion on their salaries, and collectively they have a decent amount of clout: there are enough companies with crazy inflated CxO salaries that if your board doesn't offer what the candidate pool wants, you don't fill that position. I would love to see CxO salaries drop across the board, but I don't see that happening any time soon. And regardless, as other sibling posts point out, firing the CEO and distributing the salary to the rank-and-file wouldn't improve their situation by all that much.

There are probably some exceptions but in most businesses you could eliminate the CEO salary altogether and there wouldn't be enough savings to give "the workers" more than a very small raise.

pm24601 9y ago
[Former] Wells Fargo CEO John Stumpf made 473 times more than the salary of a median employee, according to Bloomberg. That ratio of CEO-to-employee pay puts Wells Fargo at No. 33 among S&P 500 companies and third highest among financial institutions on the list. He earned $19.3 million in total compensation last year. Add in the other highly paid C-level people in WFC and Split that with the median paid and below employees would mean about $3000/year. For a full-time teller making about $30K/year that is a 10% salary difference. I do call that much more than a "small" raise.
- deleted 9y ago
  [deleted]
- cottonpicker 9y ago
  But the median-wage Wells Fargo employee is a crook who defrauds Wells Fargo employees. It is not right that those employees should profit from abusing customers. Clearly, top-tier executives should be the ones to profit from this.
  - pm24601 9y ago
    Correction: > Wells Fargo employee is a scapegoat
- kelnos 9y ago
  Right, but you wouldn't split it equally. You'd split it proportionally based on what each employee actually makes, so the $30k/yr employee would get less than a $3k raise.

kelnos 9y ago

I'm of course fine with CEOs getting lower pay, but is that a realistic outcome?

pm24601 9y ago
Yes it is.
- kelnos 9y ago
  Is it actually realistic, or would you just like it to be? Executives obviously resist downward motion on their salaries, and collectively they have a decent amount of clout: there are enough companies with crazy inflated CxO salaries that if your board doesn't offer what the candidate pool wants, you don't fill that position. I would love to see CxO salaries drop across the board, but I don't see that happening any time soon. And regardless, as other sibling posts point out, firing the CEO and distributing the salary to the rank-and-file wouldn't improve their situation by all that much.