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> For example, if you are the CEO of a supermarket, where employees are paid just above minimum wage on average, the CEO would likely be getting _much_ more. "

> For example, if you are the CEO of a supermarket, where employees are paid just above minimum wage on average, the CEO would likely be getting _much_ more. "Ideally" - if the company can only afford to pay employees minimum wage, the CEO would also be paid lower.

bArray 5y ago
In 2021 Tescos employs 367,321 people [1] with a revenue of $75.022B (~£55B) [2]. Assuming employees are paid £8.91 an hour [3] for about 30 hours a week, for 52 weeks, is ~£5.1 in wages alone. ~10% of their revenue (at least) is spent on wages alone. A significant proportion of the remaining ~90% revenue will be spent on produce, transport, stores and other operational costs. In 2020, Tesco chief executive Davis Lewis was paid £6.42m [4], which the article points out "is 355 times that of the lowest-paid average employee". If we take £3m away from him and 'share the wealth', the other 367,320 employees get a bonus of £8.17 per year, or an extra half-penny per hour. So, you have £3m to spend to increase company turnover - do you give each of the low invested interest employees a half-penny for their efforts, or do you give the chief executive manager £3m and motivate him to increase profits? It sucks, but it really seems obvious where the money has to be spent. I imagine the situation with Apple to not be much more different. [1] https://www.macrotrends.net/stocks/charts/TSCDY/tesco/number-of-employees https://www.macrotrends.net/stocks/charts/TSCDY/tesco/number... [2] https://www.macrotrends.net/stocks/charts/TSCDY/tesco/revenue https://www.macrotrends.net/stocks/charts/TSCDY/tesco/revenu... [3] https://www.gov.uk/government/publications/minimum-wage-rates-for-2022 https://www.gov.uk/government/publications/minimum-wage-rate... [4] https://www.theguardian.com/business/2020/may/13/tesco-chief-executive-handed-642m-pay-package-dave-lewis https://www.theguardian.com/business/2020/may/13/tesco-chief...

bArray 5y ago

In 2021 Tescos employs 367,321 people [1] with a revenue of $75.022B (~£55B) [2]. Assuming employees are paid £8.91 an hour [3] for about 30 hours a week, for 52 weeks, is ~£5.1 in wages alone. ~10% of their revenue (at least) is spent on wages alone. A significant proportion of the remaining ~90% revenue will be spent on produce, transport, stores and other operational costs. In 2020, Tesco chief executive Davis Lewis was paid £6.42m [4], which the article points out "is 355 times that of the lowest-paid average employee". If we take £3m away from him and 'share the wealth', the other 367,320 employees get a bonus of £8.17 per year, or an extra half-penny per hour. So, you have £3m to spend to increase company turnover - do you give each of the low invested interest employees a half-penny for their efforts, or do you give the chief executive manager £3m and motivate him to increase profits? It sucks, but it really seems obvious where the money has to be spent. I imagine the situation with Apple to not be much more different. [1] https://www.macrotrends.net/stocks/charts/TSCDY/tesco/number-of-employees https://www.macrotrends.net/stocks/charts/TSCDY/tesco/number... [2] https://www.macrotrends.net/stocks/charts/TSCDY/tesco/revenue https://www.macrotrends.net/stocks/charts/TSCDY/tesco/revenu... [3] https://www.gov.uk/government/publications/minimum-wage-rates-for-2022 https://www.gov.uk/government/publications/minimum-wage-rate... [4] https://www.theguardian.com/business/2020/may/13/tesco-chief-executive-handed-642m-pay-package-dave-lewis https://www.theguardian.com/business/2020/may/13/tesco-chief...