possibly, just possibly, if CEOs weren't pathologically greedy then you'd be able to pay your workers what they are worth and wouldn't have this 'it's too expensive' worry to keep you from doing the right thing
McDonald’s strong sales recovery and a healthy stock price performance earned its chief executive
Chris Kempczinski received a pay package of just over $20 million in 2021, according to new SEC documents filed on Monday.
That was nearly double the $10.8 million he was paid during the pandemic-plagued 2020. It was also the largest pay package received by a McDonald’s CEO since 2017, when Kempczinski’s predecessor Steve Easterbrook received $21.8 million.
There are some parts I agree with this, because if we did calculate the profits and gave all the profits generated for 2022, we would end up only being able to give the average worker a raise to $16.20 an hour divided over 1.35 million employees.
But that is part of the problem. McDonalds has become too heavy for American workers to save it. It is over franchised.
McDonald competes using the "Walmart strategy" Where they under price the competition until no one can compete and are forced to close.
But times have changed.
This business model doesn't work when workers have options for good paying jobs.
$15 * 1,350,000 = $20,250,000 per hour for all employees per hour.
Note: this does not include stock buybacks as those are not ready for 2023, but I imagine around 2 billion extra we could dig out of those expenses. Also I do not know the overall executive pay. I can tell you the CEO's pay, and even the average, but I have no Idea what that total number is.
In all, I have tried to keep the math consistent, Please criticize the math, as I still feel like I have done something wrong.
I didn't want this conclusion. But if it is true. The Food industry is going to need to raise it's prices and stop overpaying it's CEOs. Or small Family owned businesses that don't have those constraints will outpace them in the next few years.
Edit: If you want more context and made it this far, check out _healththetank's post below, it adds a little bit more understanding on what I got wrong.
14,000,000,000 / 365)/24 = 1.6 million per hour divided over 1,350,000 million employees give or take.
You're paying employees 24hrs a day, 365 days a year. They should be paid, assuming standard full time (which most of them are not), 40hrs per week, 52 weeks per year or 2,080 hours.
14,000,000,000/2080 = 6,730,769 per hour over 1.35 million staff = a raise of $5 per hour, putting the new hourly rate at $20/hr. Not way higher, but worth noting.
Additionally, as I mentioned above, the assumption of 40hrs per week for all staff is highly unlikely to be accurate. I looked, but wasn't able to find any hard data, just anecdotal stuff. Most staff I know in fast food places work ~30hrs per week, if they're 'full time', so the number is likely higher than I've shown.
Therefor it is entirely possible, even without touching the CEO pay, to pay $20 per hour to all staff.
There is also the assumption that everyone would be paid $20 when in fact they would probably fall in a range of $16 - $18 with the extremely rare $19-$20
I knew the math wasn't adding up somewhere, otherwise the new UPS contracts would bust the company.
I agree with your points, I was speaking in reference to the 20m/yr CEO salary. Over 200k employees, that only comes out to $100 per person. As you've demonstrated, it takes a lot more than just paying CEOs less.
When I read it off of the person's post I replied to. Can you show me where you saw 4bn in EpicMuch's comment? Or did you just feel like lashing out over something you barely read? How did you think your comment would be useful?