There IS an alternative

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macliam
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There IS an alternative

Post by macliam » Fri Feb 28 2020 1:46pm

Dan Price, the 31 year-old self-made millionaire owner of a card payments company in Seattle introduced a $70,000 minimum salary for all of his 120 staff in 2015. He also took a pay cut of $1m a year (from $1.1m).

He did this after realising that some of his employees were having to take second jobs in order to get by.

Five years later he's still on the minimum salary, and says the gamble has paid off.
https://www.bbc.co.uk/new s/stories-51332811

Makes a difference from the CEOs in our own companies, who seem to take delight in increasing the disparity between their own earnings and those of their workers - and the multi-millionaire "entrepreneurs" who seem focused on increasing their wealth at the cost of others.
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Chadwick
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Re: There IS an alternative

Post by Chadwick » Fri Feb 28 2020 2:25pm

This won't work for every company, but the principle of sharing the wealth amongst the workforce is a good one. I think this exactly equal split works in a small company where everyone's input is more equally valued.

But when you have some jobs that are more responsible, or have bigger consequences in the event of success or failure, then it is more difficult to argue that they should be compensated at the same level. There's also the question of attracting newcomers: you're limited to the people who really do share your values and morals.

Overall though, I think having this as a starting point, and trying to stay as close to it as possible while addressing other concerns, is generally a good principle.

macliam
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Re: There IS an alternative

Post by macliam » Fri Feb 28 2020 2:43pm

Accepted, but this has to be set against the rationale usually trotted out to justify executive pay. I accept that a variance in pay according to experience/responsibility is justified - just not in huge multiples of the base pay of the workers in the company.

This is a boss who recognised that his employees are not just numbers on the negative side of the balance sheet and that their lived experience is slightly different to his own.

He didn't see the need to be rewarded by a "package" many times higher than his people - and his response was not just add a "bonus" or lob the workers a few extra quid, but to fundamentally increase thir pay to a level that would allow them to be free from financial concerns.
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expressman33
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Re: There IS an alternative

Post by expressman33 » Fri Feb 28 2020 3:29pm

macliam wrote:
Fri Feb 28 2020 1:46pm

Five years later he's still on the minimum salary, and says the gamble has paid off.
https://www.bbc.co.uk/new s/stories-51332811
Page not found - try https://www.bbc.co.uk/news/stories-51332811
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macliam
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Re: There IS an alternative

Post by macliam » Fri Feb 28 2020 3:33pm

expressman33 wrote:
Fri Feb 28 2020 3:29pm
macliam wrote:
Fri Feb 28 2020 1:46pm

Five years later he's still on the minimum salary, and says the gamble has paid off.
https://www.bbc.co.uk/new s/stories-51332811
Page not found - try https://www.bbc.co.uk/news/stories-51332811
??????????????? - conspiracy? :shifty:
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BeautifulSunshine
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Re: There IS an alternative

Post by BeautifulSunshine » Fri Feb 28 2020 6:28pm

I have every respect for Dan Price. Not everyone can share their wealth.

I spend the lion's share of my wealth on my wife, girlfriend and children.
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