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Remember Dan Price of Gravity Paymemts, $75k min wage guy?
Posted by: Lemon Drop
Date: July 17, 2021 07:47AM
It worked out very well. Including bouncing back from the pandemic.

Turns out it is good for a business to pay folks other than top execs well. Who knew.

[twitter.com]


[forums.macresource.com]

[forums.macresource.com]
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Re: Remember Dan Price of Gravity Paymemts, $75k min wage guy?
Posted by: space-time
Date: July 17, 2021 09:48AM
So good to hear. I’d love to see what those FauxNews clowns have to say now.
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Re: Remember Dan Price of Gravity Paymemts, $75k min wage guy?
Posted by: RAMd®d
Date: July 17, 2021 11:39AM
That's incredible action, seemingly unique for a CEO.

Also interesting is a number of tweet fowling that, but not following that one.

One was [twitter.com] .

There is an economy of scale to consider but nothing says 'We don't care' like a healthy wage increase.

Another, [twitter.com] .

On a lighter noted, [twitter.com]

and

[twitter.com]





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Re: Remember Dan Price of Gravity Paymemts, $75k min wage guy?
Posted by: mrbigstuff
Date: July 17, 2021 03:55PM
If only there was a governmental disincentive to high CEO salaries (of public companies, of course). What could that be mmm?
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Re: Remember Dan Price of Gravity Paymemts, $75k min wage guy?
Posted by: Speedy
Date: July 17, 2021 07:31PM
Quote
mrbigstuff
If only there was a governmental disincentive to high CEO salaries (of public companies, of course). What could that be mmm?

What, you aren’t paid in stock options?



Saint Cloud, Minnesota, where the weather is wonderful even when it isn't.
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Re: Remember Dan Price of Gravity Paymemts, $75k min wage guy?
Posted by: C(-)ris
Date: July 19, 2021 09:26PM
Quote
Lemon Drop
It worked out very well. Including bouncing back from the pandemic.

Turns out it is good for a business to pay folks other than top execs well. Who knew.

[twitter.com]


[forums.macresource.com]

[forums.macresource.com]


That doesn't really scale past a small business. It only works for smaller offices with a couple hundred employees and a high margin product to sell with little competition. It won't work in retail or any service industry either, they don't have the profit margins to support it. So Kudos to them, hopefully nobody sees this and undercuts their business model.



C(-)ris
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Re: Remember Dan Price of Gravity Paymemts, $75k min wage guy?
Posted by: RgrF
Date: July 19, 2021 10:06PM
Quote
C(-)ris
Quote
Lemon Drop
It worked out very well. Including bouncing back from the pandemic.

Turns out it is good for a business to pay folks other than top execs well. Who knew.

[twitter.com]


[forums.macresource.com]

[forums.macresource.com]


That doesn't really scale past a small business. It only works for smaller offices with a couple hundred employees and a high margin product to sell with little competition. It won't work in retail or any service industry either, they don't have the profit margins to support it. So Kudos to them, hopefully nobody sees this and undercuts their business model.

What it scales to is that business models that depend on publicly paid employee social services to sustain their model need to be rethought and eliminated.
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Re: Remember Dan Price of Gravity Paymemts, $75k min wage guy?
Posted by: Lemon Drop
Date: July 20, 2021 08:54AM
Quote
RgrF
Quote
C(-)ris
Quote
Lemon Drop
It worked out very well. Including bouncing back from the pandemic.

Turns out it is good for a business to pay folks other than top execs well. Who knew.

[twitter.com]


[forums.macresource.com]

[forums.macresource.com]


That doesn't really scale past a small business. It only works for smaller offices with a couple hundred employees and a high margin product to sell with little competition. It won't work in retail or any service industry either, they don't have the profit margins to support it. So Kudos to them, hopefully nobody sees this and undercuts their business model.

What it scales to is that business models that depend on publicly paid employee social services to sustain their model need to be rethought and eliminated.

Exactly. The current obscene difference between lowest and highest paid in many businesses is detrimental to society. Dan Price 's point is to highlight that he took a pay cut so his workers could each earn decent wages. And it has made his business more successful and resilient while his employees thrived. .

People obsessed over the $75k figure and that is not really the point. Obviously not all businesses can offer that as a minimum but they could offer more than they do now.

Example:Kroger chose to close 2 stores in the Seattle area rather than pay the required extra $4 hour COVID emergency pay that the city mandated. And which their financials show they can easily afford. Then they gave the CEO a huge multi-million dollar bonus.
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Re: Remember Dan Price of Gravity Paymemts, $75k min wage guy?
Posted by: C(-)ris
Date: July 20, 2021 06:30PM
Quote
Lemon Drop
Example:Kroger chose to close 2 stores in the Seattle area rather than pay the required extra $4 hour COVID emergency pay that the city mandated. And which their financials show they can easily afford. Then they gave the CEO a huge multi-million dollar bonus.

You still run into the economy of scale problem. First, let's assume that Kroger probably would have been OK giving those two specific stores employees more pay. We can then assume that the reason they didn't do it is because they didn't want to give all employees a $4 raise.

So given that....

Kroger currently employs 465k employees. Let's say for the sake of argument that their hourly average across all their employees is 25 hours per week. So $4 per hour multiplied by 25 hours is an extra $100 a week. There are 52 weeks in a year, so 52 multiplied by $100 is $5200 per employee per year. Take that $5200 per employee per year and multiply it by the 465k employees and you get $2,418,000,000.

Do you really think their budget can handle a 2.4 Billion dollar wage increase?

Let's go backwards now. Their CEO gets $20.6 Million. Divide that by 465k employees and each employee would get $44.30 extra per year if he took a zero dollar salary. Assuming the previous 25 hour per week average for those workers, and the increase for a worker would be $0.034 per hour.

So again, explain to me how cutting executive salary and giving it to the workers is going to make any noticeable difference in the employee wage in a corporation? That $4 increase would also completely wipe out their yearly profit. In 2 years they would be out of business.



C(-)ris
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Edited 2 time(s). Last edit at 07/20/2021 06:34PM by C(-)ris.
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Re: Remember Dan Price of Gravity Paymemts, $75k min wage guy?
Posted by: Lemon Drop
Date: July 21, 2021 07:38AM
Kroger could easily pay hourly associates more and still be profitable.



First a correction, the two stores that were closed allegedly to protest locally-mandated pay increases were in Long Beach CA and Seattle, not both in Seattle.

Your example doesn't make any real world sense to me. Kroger employees are paid based on local job market conditions, including union contracts, so Kroger cashiers in Indiana get $8/hr and in Seattle they get $19/hr. Kroger would not respond to a local mandate by giving all their employees a raise. Interestingly companies like Trader Jo's had no problem with the wage increase.

Kroger itself announced a $2/hr "hero" pay increase for store employees at the start of the pandemic, in recognition of the dangers of this work, but then abruptly ended it a few weeks later after basking in the publicity stunt.

Kroger had a big increase in profits in 2020. Their FIFO operating profit was nearly $5b and they returned $1.9b to shareholders,. Just last month they announced another $1b stock buyback. This is a neat trick, illegal before the Reagan admin., that allows companies to hand profit to the wealthiest and screw over workers.

Regarding CEO pay, their CEO earns 798 times more than the median Kroger salary. That is obscene.

"And while Kroger isn't willing to pay the "heroes'' its leadership loves to praise in press releases, the corporation happily opened their wallets for shareholders this year, paying out a dividend of 18 cents per share. 

Last year, Kroger said in a press release, "We have returned approximately $6.4 billion to shareholders via dividends and repurchased shares [also known as stock buybacks] since the beginning of fiscal 2017." As thanks for returning obscene profits to shareholders, CEO W. Rodney McMullen received $21 million in total compensation in 2019, an increase of 76% over the year before and 798 times the median annual Kroger employee salary that same year. 

McMullen wasn't the only one who received hero pay a year before the pandemic, ExecPay noted: "In 2019, six Kroger executives received on average a compensation package of $8.7 million, a 46% increase compared to previous year." 

While Kroger can find plenty of money for its CEO, its executive team, and its shareholders, the corporation picks up its toys and heads home when city lawmakers ask it to increase pay for the frontline workers who have been putting their lives on the line so that Kroger can boast about their unprecedented profits. "

[www.businessinsider.com]

[www.newsweek.com]

[www.marketwatch.com]

[ir.kroger.com]
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