How does CEO pay go Through the Roof without price increases in products?

[ClosedCaption]

I was having a discussion in another thread where the Repubs (usually) would say you cant pay more than what the current Minimum is because product prices would increase.

According to some estimates CEO pay has increased 800% since the 70's. Where is the $34 Big Mac?

How can we increase CEO pay so much and never see an huge increase? How can CEO's get paid so much and no one worries about product price increases?

Now, why does that all change when you talk about Employees pay? Suddenly if you give employees more money explosions, death and famine will ensue?

Closed Caption, do you take into consideration that since the 1970's, countless companies have merged (to form supercompanies), and have expanded globally resulting in LESS CEOS, resulting in MORE PAY per CEO?

If there are four food companies in 1970 with four CEOs and $100 (total in the market's pot) to pay the CEOs, than each CEO gets $25. However in 2013, when those companies merge, the single CEO now makes $100.

I didn't and that's a good point but even when companies aren't merged "the market" dictates CEO pay should be at those levels.

 

[KevinWestern]

I didn't and that's a good point but even when companies aren't merged "the market" dictates CEO pay should be at those levels.

Not sure I follow you here man....

 

[ClosedCaption]

You are adding layers of calculation to obscure the simple fact that Mcdonalds has to come up with another $8 billion in income to cover the additional costs of labor. So where does that money come from?

Now layers of calculation is bad?

If you don't talk about a specifc #, then you don't have much to talk about.

Is it because once you look at the details your supposed snark point evaporates away?

Yes, its a distraction. The hard real life numbers are it costs X amount of money to run a mcdonalds right now. X labor costs, Y material costs, Z infrastructure costs. You make A amount of money per day (all average) and your surplus over your costs is your daily profit. "B"

Now take cost "X" (labor) and slightly less than double it. Keeping all other cost #'s the same, and your income the same, where does the additional money come from?

Geez for a guy who said I have to use real numbers you seem to go back on that rather quickly

 

[ClosedCaption]

I didn't and that's a good point but even when companies aren't merged "the market" dictates CEO pay should be at those levels.

Not sure I follow you here man....

CEO pay follows the market right?

so even when companies haven't merged they use all CEO pay to come to an average don't they?

I'm asking because I don't pretend to know

 

[Spiderman]

I was having a discussion in another thread where the Repubs (usually) would say you cant pay more than what the current Minimum is because product prices would increase.

According to some estimates CEO pay has increased 800% since the 70's. Where is the $34 Big Mac?

How can we increase CEO pay so much and never see an huge increase? How can CEO's get paid so much and no one worries about product price increases?

Now, why does that all change when you talk about Employees pay? Suddenly if you give employees more money explosions, death and famine will ensue?

So the CEO pay at MCD's has increased 800% ? Or are you saying that every single of the millions of products and services on the market are 100% analogous to Big Macs?

And where have you been prices are going up all the time and if they're not going up what you get for the price is less. In most cases you pay more for less.

 

[KevinWestern]

I didn't and that's a good point but even when companies aren't merged "the market" dictates CEO pay should be at those levels.

Not sure I follow you here man....

CEO pay follows the market right?

so even when companies haven't merged they use all CEO pay to come to an average don't they?

I'm asking because I don't pretend to know

Still not sure if I'm fully following, but will say this.

Not every CEO is created equally. Some CEOs run a simple internet company with 10 employees that generates $1 million in revenue every year, and some CEOs run a food business that generates $50 billion a year and spans the globe with over 800,000 employees.

The latter business is obviously is going to much more complicated to run, with much more on the line, and therefore the CEO will likely get paid a lot more money than the guy with the small internet company.

Since the 1970's we've seen companies both grow in size, complexity, and total revenue, and therefore I don't think it's a ridiculous notion that CEO pay has also grown. A more complex role will require a company to dish out more money for talent...

Make sense?

 

[depotoo]

Hamburger meat was 45 cents a pound in 1963 in Wisconsin. Today it is nearly $4 a lb. A hamburger was 15 cents in 63. Today it is 99 cents. (couldn't find price per lb. for 1970)
That meat cost McDonalds for an 1/8 lb. 6 cents for the meat. The price for the burger was triple that Today that same burger costs 49 cents in meat. Today it is only double the price of the meat.
There were only 2000 franchises in the 70's. Today there are over 34,000 all over the world. An increase of 1700%. Yet CEO pay has only increased 800%? Sounds like they have become more efficient.

 

[boedicca]

Here's why CEO pay has increased: QE^Infinity inflates stock prices.

The vast increase in the money supply Seeks Assets...and with interest rates so low, stocks are preferred over bonds. CEO pay as reported in financial statements includes the value of stock options. Such stock options often haven't been exercised and the CEO hasn't received any cash for them. They may turn into worthless paper later...but the company takes a compensation charge are reports the Faux Compensation regardless.

 

[martybegan]

Now layers of calculation is bad?

Yes, its a distraction. The hard real life numbers are it costs X amount of money to run a mcdonalds right now. X labor costs, Y material costs, Z infrastructure costs. You make A amount of money per day (all average) and your surplus over your costs is your daily profit. "B"

Now take cost "X" (labor) and slightly less than double it. Keeping all other cost #'s the same, and your income the same, where does the additional money come from?

Geez for a guy who said I have to use real numbers you seem to go back on that rather quickly

You didnt answer the question. where does the money to increase "X" come from?

 

[Sunshine]

I was having a discussion in another thread where the Repubs (usually) would say you cant pay more than what the current Minimum is because product prices would increase.

According to some estimates CEO pay has increased 800% since the 70's. Where is the $34 Big Mac?

How can we increase CEO pay so much and never see an huge increase? How can CEO's get paid so much and no one worries about product price increases?

Now, why does that all change when you talk about Employees pay? Suddenly if you give employees more money explosions, death and famine will ensue?

"WE" don't increase the pay of CEO's. CEO's negotiate their salaries, just like MDs and NPs do. Why do you stress about it? You don't have what it takes to be a CEO anyway? If you want to make more than minimum wage to sling hamburgers, negotiate!

 

[LTCArmyRet]

WHY is this even being discussed???? If this bothers so many of those complaining about it, go get your bachelor business degree, your MBA, work for 20-30 years climbing the corporate ladder, 60-80 hours a week I might add. Then let's see if you would tell the board of directors, " I really appreciate the amount you're wanting to pay me, but it's too much, I'll only take a 1/3 of what you're offering."

 

[CrusaderFrank]

People have to first understand what a CEO is and what his function is in the company and no, chief proletariat exploiter is NOT the job description

 

[Sunshine]

I'm not talking about a specific number. ANY increase is said to increase prices but we see CEO pay going up 800% hasn't affected anything.

You mean you can't make a cool million posting on an internet forum every day?

 

[depotoo]

Starting wage in 1963 was $1.25 per hour. Today the median wage at McDonalds is now $10.02 per hour. 800% an hour increase. Sounds like the wages there are keeping up percentage wise to the CEO's.

 

[Sunshine]

From the link:


How Many Big Macs Are Sold Each Day? - Ask.com


That's just Big Macs. Doesn't include the Coke and fries or cheeseburgers or chicken nuggets and the other dozens of menu items.




How Many Hamburgers Does McDonalds Sell Each Year? - Ask.com



The Real Change In The Cost Of A Big Mac If McDonald's Workers Were Paid $15 An Hour: Nothing - Forbes

You are adding layers of calculation to obscure the simple fact that Mcdonalds has to come up with another $8 billion in income to cover the additional costs of labor. So where does that money come from?

Now layers of calculation is bad?

If you don't talk about a specifc #, then you don't have much to talk about.

Is it because once you look at the details your supposed snark point evaporates away?

It is if you are unable to calculate.

 

[ClosedCaption]

WHY is this even being discussed???? If this bothers so many of those complaining about it, go get your bachelor business degree, your MBA, work for 20-30 years climbing the corporate ladder, 60-80 hours a week I might add. Then let's see if you would tell the board of directors, " I really appreciate the amount you're wanting to pay me, but it's too much, I'll only take a 1/3 of what you're offering."

You're right lets not talk about this. Wait, why are you here then?

 

[ClosedCaption]

I'm not talking about a specific number. ANY increase is said to increase prices but we see CEO pay going up 800% hasn't affected anything.

You mean you can't make a cool million posting on an internet forum every day?

Surprisingly you cannot

 

[ClosedCaption]

I was having a discussion in another thread where the Repubs (usually) would say you cant pay more than what the current Minimum is because product prices would increase.

According to some estimates CEO pay has increased 800% since the 70's. Where is the $34 Big Mac?

How can we increase CEO pay so much and never see an huge increase? How can CEO's get paid so much and no one worries about product price increases?

Now, why does that all change when you talk about Employees pay? Suddenly if you give employees more money explosions, death and famine will ensue?

"WE" don't increase the pay of CEO's. CEO's negotiate their salaries, just like MDs and NPs do. Why do you stress about it? You don't have what it takes to be a CEO anyway? If you want to make more than minimum wage to sling hamburgers, negotiate!

I'm not stressed baby this is a message board, where you message people. You're thinking about a stress board maybe.

Negotiate...what a novel idea Sweetheart. Thanks

 

[auditor0007]

I was having a discussion in another thread where the Repubs (usually) would say you cant pay more than what the current Minimum is because product prices would increase.

According to some estimates CEO pay has increased 800% since the 70's. Where is the $34 Big Mac?

How can we increase CEO pay so much and never see an huge increase? How can CEO's get paid so much and no one worries about product price increases?

Now, why does that all change when you talk about Employees pay? Suddenly if you give employees more money explosions, death and famine will ensue?

Closed Caption, do you take into consideration that since the 1970's, countless companies have merged (to form supercompanies), and have expanded globally resulting in LESS CEOS, resulting in MORE PAY per CEO?

If there are four food companies in 1970 with four CEOs and $100 (total in the market's pot) to pay the CEOs, than each CEO gets $25. However in 2013, when those companies merge, the single CEO now makes $100.

It's not so much about how much the CEO makes as it is how little the employees make. Wages for workers have stagnated over the past 30 years while CEO and upper management pay has mushroomed.

 

[auditor0007]

I was having a discussion in another thread where the Repubs (usually) would say you cant pay more than what the current Minimum is because product prices would increase.

According to some estimates CEO pay has increased 800% since the 70's. Where is the $34 Big Mac?

How can we increase CEO pay so much and never see an huge increase? How can CEO's get paid so much and no one worries about product price increases?

Now, why does that all change when you talk about Employees pay? Suddenly if you give employees more money explosions, death and famine will ensue?

"WE" don't increase the pay of CEO's. CEO's negotiate their salaries, just like MDs and NPs do. Why do you stress about it? You don't have what it takes to be a CEO anyway? If you want to make more than minimum wage to sling hamburgers, negotiate!

It's a funny thing that unions came about to negotiate for the employees, so they could actually try to "negotiate", but cons hate unions with a passion. In fact, the vast majority of cons blame unions for the poor economy. So tell us why it is such a bad thing to have unions "negotiate" worker salaries.