The Fallacy of (some) CEO pay.

Jinentonix

Executive Branch Member
Sep 6, 2015
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The left likes to say that if you can't afford to pay your employees a living wage, you can't afford to pay your CEO millions of dollars a year.


Robert Reich ( or as I like to call him, 3rd Reich Robert) busted out Walmart as an example where their CEO is pulling down about $6 million/yr. Now, while the average Walmart employees makes about $20,000/yr or $0.24 less an hour than their retail counterparts, they still make more than the minimum wage in most places.
Walmart employs 2.1 million worldwide. Walmart's pre-tax earnings in 2018 was $22 billion. Now, if Walmart decided to take all of those pre-tax earnings and equally distribute it to their 2.1 million employees as a raise, it would increase their annual income by about $10,000 per year. Now, while that seems like a nice bump we need to remember a few things. 1) The figures are based on pre-tax earnings, not profit. 2) $30,000/yr is still below a "living wage" and 3) It still doesn't come close to replacing all those $45,000+ per year manufacturing jobs that have been lost.
If Walmart decided to slash their CEO's compensation by half and distribute that $3 million out as raises for the employees, it works out to around $1.47/hr. Which means if Walmart's CEO worked for free and the $6 million was used to give raises to all their employees, it works out to less than $3/hr per employee.



Hardly the life changing wage increase the mathematically challenged leftists think it would be.
 

Jinentonix

Executive Branch Member
Sep 6, 2015
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Here is what he actually makes

https://sbj.net/stories/walmart-ceos-compensation-rises,63562


the $15 million stock award and $5 million bonus is difficult to quantify in terms of taxes
Well, I got the $6 million from ol' 3rd Reich Robert, one of your Democrat buddies in the US.


And I guess you missed the point. If divvying up $22 billion isn't going to get the employees a living wage, then I have grave misgivings that $26 million will get them there.


In the US, except for two states, the lowest annual living wage needed to live is $50,000. It ranges from $50,000 to $70,000 depending on the state. If we use the lower $50,000 figure, Walmart would have to pull an annual profit of $105 billion and plough it all into raises just to get their employees to $50,000/yr. In 2018 their pre-tax earnings were only $22 billion.
 

Cannuck

Time Out
Feb 2, 2006
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The same argument could be made for welfare and social protection. We pay around $100 per month per capita here in Alberta
 

Hoid

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Oct 15, 2017
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Well, I got the $6 million from ol' 3rd Reich Robert, one of your Democrat buddies in the US.
And I guess you missed the point. If divvying up $22 billion isn't going to get the employees a living wage, then I have grave misgivings that $26 million will get them there.
In the US, except for two states, the lowest annual living wage needed to live is $50,000. It ranges from $50,000 to $70,000 depending on the state. If we use the lower $50,000 figure, Walmart would have to pull an annual profit of $105 billion and plough it all into raises just to get their employees to $50,000/yr. In 2018 their pre-tax earnings were only $22 billion.
Walmart makes $14.7 billion a year in profits. It would equal about $7,000 a year for 2.2 million employees.
https://moneynation.com/how-much-money-does-walmart-make/