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barkwheats

posts: 35

Dec 05, 2008 11:40 AM ET    Quote  Report Abuse
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Hi all,

I`m trying to find some information on wage gap in the workplace, but not as it references gender wage gap, but more of CEO to lowest earner wage gap.  Does anyone have any experience with setting something like this up where the CEO of the company doesn`t earn more than like 400% of the smallest wage earner?





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wtgg

posts: 257

Dec 07, 2008 7:38 PM ET    Quote  Report Abuse
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I have been away for awhile, but I have one question for you, assuming the ceo is also the founder, why on earth would you limit your income? you had the vision, you sacrificed tons to get it off the ground, you found ways to do the impossible with no money and less time, the lowest paid employee just walked up and got a job that they probably need to learn at your expense.
Maybe I am being a bit critical but I have come to accept it is ok to be rewarded more than employees, on those weeks that incoming receipts don`t leave enough for you, who gets a short paycheck?
Just a thought
Stan
barkwheats

posts: 35

Dec 08, 2008 7:32 AM ET    Quote  Report Abuse
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Thanks Stan,

I wouldn`t be limiting my own income.  If I wanted a raise, I can give myself a raise.  The lowest earner would just also get a raise proportionate to mine.  I personally am sick of the huge wage gap in the US where CEO`s can earn 300-400 times the lowest earner.  To me, that`s a huge part of our economic woes.  If the CEO of a large company was paid just say 150 times or like in most other countries, around 20 times the earnings of the lowest paid employee then everyone benefits.

My company is a Certified B Corporation, where the B stands for benefit.  I`m not out to make myself the only benefactor in my company.  I designed my company so that all stakeholders benefit, be it the farmers who grow my ingredients, the shareholders who invest in my company, the Earth.... I don`t believe in 1 person seeing all the gain, no matter if I had the larger vision or not.  Why would someone want to limit someone elses growth is my question?  I don`t believe in limiting anyone, and those limits that get placed on people are the problem with the world.

If the incoming receipts don`t leave enough for me.... then so be it.  Since I`d be getting paid more than the others, I have the ability to save for those kinds of times.  I want my company to be a place where people want to come and work because of the work we do, what we sell, and the mentality of equality.  I don`t want people coming to work for me because it`s just "another job" that they can toss away if something comes along that`s better.  I guess it`s really striving for employee retention.

Figure it this way.  How much would one spend on training an employee, maybe having to pay some moving expenses to get the right person out there for the job.  Lots and lots go into that whole thing.  The interview process, the follow up calls, all the reviewing of applications...  if you don`t have to do that often then there`s a lot of money you`re not spending on that, and can instead pay that money to the qualified person you`ve hired for that job to make them not want to take any other job.  To me, that just makes sense. 



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nevadascul

posts: 651

Dec 09, 2008 12:36 PM ET    Quote  Report Abuse
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I think there is a problem when we demonize people who do well in business.  Granted, we would all like to see the guy / gal at the bottom of the totem pole make a good wage.  But, consider the investment most CEO`s have made in there education and life style changes.  Many CEO`s have spent a small fortune on their education and sacrificed time with family to build a business.  High paid CEO`s also bring a considerable amount of experience to a business that the average wage earner doesn`t have.  And, many CEO`s are not the demons portrayed on T.V.  They are honest hard working individuals.  They also are the ones willing to make the hard decisions to keep a business alive.  Most average wage earners would have a hard time for instance deciding who to keep and who to let go if a business falls on hard times.  Trust me, it`s not an easy decision.
nevadascul12/11/2008 12:22 PM


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The older we get, the more excuses we make for not chasing after our dreams. But truth is, goals are attainable at any age.
barkwheats

posts: 35

Dec 09, 2008 12:49 PM ET    Quote  Report Abuse
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Thanks.  I`m not "demonizing" CEO`s, first of all.  I simply wanted some info on the wage gap that`s ever increasing.  Are people not aware that there are lots of CEO`s who get paid very handsomely and then the other 98% of Americans who can`t get paid enough to put food on the table for their families?  All I want to do, and what I think all companies should do, is treat their employees well. 

Sure, a CEO can bring lots of experience to the table that a lower wage earner might not have.  That begs to ask the question...why doesn`t that lower earner have that experience?  Maybe because their parents were low income workers and couldn`t afford the same education afforded to the CEO.  And if the CEO`s of those companies that the parents worked for had a policy in place to limit the wage gap, could those lower wage workers have had a better education to do better for themselves, to open more opportunities for the marketplace and increase everyone`s wealth?  I think so!

Maybe I`m just in the wrong place to be asking about equality issues, because not many people around here seem to really understand what I`m wanting to accomplish.



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wtgg

posts: 257

Dec 09, 2008 2:01 PM ET    Quote  Report Abuse
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Bark; I think I understand what you are looking for, I just am not sure a wage gap limit is the way to accomplish it. as far as treating people well, and offering the ability and oppurtunity to adavce and grow, I am all for that. Investing in an employees growth and advance them through the levels they can master is how people used to get from the bottom to the top, or at least the middle. Personally I find in todays world to many want to point up and say give me some I deserve it because I`m here, it is the people that contribute to the company day in day out without complaining that should be rewarded.
In my opinion with all the information available in todays world at anyones finger tips, for free, there is a hole in the whole my dad was poor so I am poor story. As for me personally I don`t want to be surrounded with content employees I want them pushing for more from and for themselves. I think I accomplish that while providing a friendly, good natured environment.
Bottom line with a wage gap limit the best anyone has to be is the minimum.
I suggest you consider a "fast track" program for those that aspire, a daily or weekly "town meeting" (depending on your company size) sharing your goals for the company and reporting how far the company advanced in the last week, share the fever, not all will jump in, then consider limiting yourself  because you feel indentured to a middle of the road employee.
I respectfully disagree that a gap limit is not in any way insirational, nor motivational.
 
2 cents
Stan 
barkwheats

posts: 35

Dec 09, 2008 2:21 PM ET    Quote  Report Abuse
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Personally I find in todays world to many want to point up and say give me some I deserve it because I`m here, it is the people that contribute to the company day in day out without complaining that should be rewarded.


To this I`d ask why would the employees be complaining if they knew their earnings were directly related to the CEO`s earnings with an appropriate wage gap?  So often the employees complain because the CEO has a 10k sqft garage with 15 porsches and a private yet, and they`re stuck doing the "dirty" work feeling unappreciated.


In my opinion with all the information available in todays world at anyones finger tips, for free, there is a hole in the whole my dad was poor so I am poor story.


Sorry, but you`re absolutely wrong about that one.  Just because there`s internet access doesn`t mean a kid will be able succeed in the world.  When I went to college for music production and engineering and graduated near the top of my class, that is what enabled me to work in Nashville.  That was what enabled me to work for one of the largest music retailers in the world.  I could never have gotten that kind of education by reading forums and online articles.


As for me personally I don`t want to be surrounded with content employees I want them pushing for more from and for themselves. I think I accomplish that while providing a friendly, good natured environment.



You can most certainly have content workers with incentives for them to strive to do more.  I don`t think having an appropriate wage gap would make workers become complacent.  I would most certainly want to have content workers because that makes employees actually care about the work they are doing and do it better.  It`s so hard for me to believe that someone would think they don`t want to have content employees.  Content doesn`t mean lazy.


Bottom line with a wage gap limit the best anyone has to be is the minimum.
I suggest you consider a "fast track" program for those that aspire, a daily or weekly "town meeting" (depending on your company size) sharing your goals for the company and reporting how far the company advanced in the last week, share the fever, not all will jump in, then consider limiting yourself  because you feel indentured to a middle of the road employee.
I respectfully disagree that a gap limit is not in any way insirational, nor motivational.


I respectfully disagree with your disagreement.  I think that when one would have a wage gap limit it would make employees feel more connected to their job and when someone is more connected to their job, they want to do it the best they can.  No matter what, when someone is doing their job the best they can, everyone will move forward.  Now, having a wage gap limit doesn`t mean there can`t be other performance based incentives.  I just think that it prevents CEO`s from going out of control in their salaries and leaving sour tastes in other employees mouths, not feeling connected to the company as a whole.



barkwheats12/9/2008 2:24 PM


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wtgg

posts: 257

Dec 09, 2008 3:03 PM ET    Quote  Report Abuse
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Bark;
I apologize I dont agree with your perspective, and apearently you don`t agree with mine. maybe there are life learned reasons, it really doesn`t matter. I still respect your position and knowledge.
If I don`t get the chance before then; Have a safe and meaningful holiday!
cheers.
Stan
barkwheats

posts: 35

Dec 09, 2008 3:09 PM ET    Quote  Report Abuse
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You as well


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ladderless

posts: 37

Dec 16, 2008 12:14 PM ET    Quote  Report Abuse
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Interesting conversation.
 
Are we talking about salary?  Or complete take-home?
 
I am firmly of the belief that you get paid for a job, and rewarded for taking risk (That succeeds).  Those are two different things, and should be kept separate.
 
I have no problem with capping a CEO`s wages for a job performed to a multiple of someone else`s wages for a job they do, but if the CEO is the one who started the company, and took the risk, then there`s a separate issue.
 
So you have wages for a job done, and profit for taking the risk to start the company.
 
I think this is why profit sharing is a decent way to go...  Make everyone win and get rewarded for having a successful company.


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Nelson
Accessmount LLC
www.accessmount.com   
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