Seattle CEO to cut his pay so every worker earns $70,000

[Mr Dink]

But ummmmmmmmm increasing pay is on of the ways to fight a high turnover rate

That's not true at all. If a company doesn't have a choice but to give you a raise (such as an increase in minimum wage) and they don't want to pay you at the increased rate, only solution would be lay offs.

 

[truth-serum]

If there are no incentives in life, society would remain stagnant and regress

This country would be much better if they capped everyone at 70k a year

 

[Based Jesus]

If there are no incentives in life, society would remain stagnant and regress

This country would be much better if they capped everyone at 70k a year

Money isn't the only incentive in life.

 

[Mr Dink]

Money isn't the only incentive in life.

CREAM.

 

[fontaine]

If the company was publically traded that would be the only way to know how many shares he had, if any. And what there valuation would be. The equity argument holds no water. Too many unknowns.

I'm basing every I've said on the article. Sure he's a successful guy and a risk taker. But the fact still remains that he's steered his company into rough waters and chances of success are minimal. But hey, if he makes. Congrats. But I highly doubt it.

Aight famb...

The owner of the company doesn't know how much he has invested in a company...

And nobody can value a Private company...

I mean... It's not like there are Private equity funds that... You know... But Private companies...




Hell... How do IPOs even exist??

Rico... You da man, famb.

 

[RustyShackleford]

But ummmmmmmmm increasing pay is on of the ways to fight a high turnover rate

That's not true at all. If a company doesn't have a choice but to give you a raise (such as an increase in minimum wage) and they don't want to pay you at the increased rate, only solution would be lay offs.

Huh?

If you're try to say this is universally true then you're flat wrong. Depending on the industry company can raise it's prices too, or alter they benefits they give to employees, or substitute labor for capital.

If a we passed law tomorrow saying that all chefs/head cooks had to make $50 an hour, would every restaurant fire their chefs? No, the would raise the price of their meals to cover it.

I said it is one of the ways to reduce a turnover rate.

 

[rico x hood]

Aight famb...

The owner of the company doesn't know how much he has invested in a company...

And nobody can value a Private company...

I mean... It's not like there are Private equity funds that... You know... But Private companies...




Hell... How do IPOs even exist??

Rico... You da man, famb.

Please find me the valuation of his private shares. You and others seem to to be so sure he's living off the equity of his shares which is why he could take the paycut. No worries. I'll wait.

 

[johnnyredstorm]

It's not that hard to figure out a valuation. How much is invested in the company juxtaposed against how much equity.

I go on Shark Tank I say Mark Cuban I want 100,000 for 10% of my company, I'm valuing my company at a million.

 

[Mr Dink]

Huh?

If you're try to say this is universally true then you're flat wrong. Depending on the industry company can raise it's prices too, or alter they benefits they give to employees, or substitute labor for capital.

If a we passed law tomorrow saying that all chefs/head cooks had to make $50 an hour, would every restaurant fire their chefs? No, the would raise the price of their meals to cover it.

I said it is one of the ways to reduce a turnover rate.

And raising prices will lose you customers, as well. You think customers are gonna give a damn if the steak you previously ordered jumped from $50 to $150 cuz you have to pay your chefs $50/hr? I'm all for giving raises, but nothing dramatic. That's why I'm heavily against rhe $15/hr minimum wage proposal. An increase too high will actually cause a high turn over rate.

 

[RustyShackleford]

Huh?

If you're try to say this is universally true then you're flat wrong. Depending on the industry company can raise it's prices too, or alter they benefits they give to employees, or substitute labor for capital.

If a we passed law tomorrow saying that all chefs/head cooks had to make $50 an hour, would every restaurant fire their chefs? No, the would raise the price of their meals to cover it.

I said it is one of the ways to reduce a turnover rate.

And raising prices will lose you customers, as well. You think customers are gonna give a damn if the steak you previously ordered jumped from $50 to $150 cuz you have to pay your chefs $50/hr? I'm all for giving raises, but nothing dramatic. That's why I'm heavily against rhe $15/hr minimum wage proposal. An increase too high will actually cause a high turn over rate.

Nice deflection brah

 

[fontaine]

Please find me the valuation of his private shares. You and others seem to to be so sure he's living off the equity of his shares which is why he could take the paycut. No worries. I'll wait.

@ that middle school response.


Whatever bro. You got it. I have to go to work in the morning...

Not about to fall into your nonsense.

 

[Master Zik]

These North westerners on some Canadian ****. I aint mad at them though. Good for those employees. Not sure that business model lasts long or is copied by many other CEOs.

 

[rillo561]

The usual cats with the doom and gloom, never fails. NT economist

 

[elecrelaxation]

Capping at 70k is a terrible idea and so is that 15 dollar minimum wage idea that's been gaining traction. Why would I take the risk of starting a business, working my *** off in the initial phases, maybe going into a deep debt if it fails, if I'm capped at 70k?

People look at these proposals and act like it's just a dichotomy between evil billion dollar companies and a single mom who desperately needs more pay....but these policy changes will affect everyone and more of the work force in America is employed by small businesses. Many big businesses have already found ways to circumvent all the regulations and wage increases you guys are throwing at them whether it's building factories in other countries or farms/grocery chains replacing workers with tech. Many of the small businesses will struggle to pay their employees that much without taking it from other places, and taking it out of the owner's salary or from the company's profits that will be reinvested isn't a reasonable expectation for a small business.

We already have government safety nets and we already have a decent minimum wage. The bigger problem is unemployment, not underpay, and unemployment will increase significantly when big businesses find more ways to avoid paying unskilled employees increased wages and more small businesses will be unable to keep up, fail and more people will be discouraged from even starting one in the first place.

 

[tommyicerocking]

capitalism is whack 

 

[fontaine]

It's not that hard to figure out a valuation. How much is invested in the company juxtaposed against how much equity.

I go on Shark Tank I say Mark Cuban I want 100,000 for 10% of my company, I'm valuing my company at a million.

apparently....

It's not plausible for a dude that started s company... Received numerous honors... And was paying his SALARY to himself of $1M...

Has enough cash to tidy him over until they get their profits back up to $2.2M


Nah....




Just did a quick valuation on a company spinning off $1.2M of cash flow...

Yes. $1.2

8% discount rate

No growth

Valued at $20M..


So my man has a company valued easily over $20M...

But according to Rico, he's doing it wrrong.

 

[Betonblck]

Rico,

Read this article on privately held shares and trading of private shares and go to sleep man.

http://www.wsj.com/articles/SB10001424052970204685004576045943100180026

 

[RustyShackleford]

Capping at 70k is a terrible idea and so is that 15 dollar minimum wage idea that's been gaining traction. Why would I take the risk of starting a business, working my *** off in the initial phases, maybe going into a deep debt if it fails, if I'm capped at 70k?

People look at these proposals and act like it's just a dichotomy between evil billion dollar companies and a single mom who desperately needs more pay....but these policy changes will affect everyone and more of the work force in America is employed by small businesses. Many big businesses have already found ways to circumvent all the regulations and wage increases you guys are throwing at them whether it's building factories in other countries or farms/grocery chains replacing workers with tech. Many of the small businesses will struggle to pay their employees that much without taking it from other places, and taking it out of the owner's salary or from the company's profits that will be reinvested isn't a reasonable expectation for a small business.

We already have government safety nets and we already have a decent minimum wage. The bigger problem is unemployment, not underpay, and unemployment will increase significantly when big businesses find more ways to avoid paying unskilled employees increased wages and more small businesses will be unable to keep up, fail and more people will be discouraged from even starting one in the first place.

You completely ignoring the fact that this guys has been crazy successful already, is a millionaire, and is choosing to do with his own company.

No one is arguing that his should be implement universally. But a lot of business could afford pay their workers more, and provide to them with better benefits but choose not to.

This guy is getting props for going the other way. That's his choice, for his company.

No one is saying this should be a law, but some dudes seemed to think it is economic fact that this can't work.

-BTW we have a horrible minimum wage in this country, and we have routinely been cutting social safety nets recently. It is rough as hell outchea for the working poor

 

[elecrelaxation]

You completely ignoring the fact that this guys has been crazy successful already, is a millionaire, and is choosing to do with his own company.

No one is arguing that his should be implement universally. But a lot of business could afford pay their workers more, and provide to them with better benefits but choose not to.

This guy is getting props for going the other way. That's his choice, for his company.

No one is saying this should be a law, but some dudes seemed to think it is economic fact that this can't work.

-BTW we have a horrible minimum wage in this country, and we have routinely been cutting social safety nets recently. It is rough as hell outchea for the working poor

Yeah, I was speaking specifically to the two ideas mentioned in this thread, a 70k cap on salary and the $15 dollar minimum wage campaign. I'm against both.

I'm completely fine with this guy doing whatever he wants.

 

[johnnyredstorm]

Minimum wage increases are just competing with the rate of inflation. If you have a problem with it, write your local congressman and complain about the fed.

 

[elecrelaxation]

Minimum wage increases are just competing with the rate of inflation. If you have a problem with it, write your local congressman and complain about the fed.

15 dollars isn't simply competing with the rate of inflation.

My county already has programs to increase minimum wage over the course of 4 years to 11.50 by 2017. I'm fine with that.

 

[johnnyredstorm]

That's not enough for people to live on man. Especially when you factor in two more years of inflation chewing away at your dollar's worth.

 

[RustyShackleford]

You completely ignoring the fact that this guys has been crazy successful already, is a millionaire, and is choosing to do with his own company.


No one is arguing that his should be implement universally. But a lot of business could afford pay their workers more, and provide to them with better benefits but choose not to.


This guy is getting props for going the other way. That's his choice, for his company.


No one is saying this should be a law, but some dudes seemed to think it is economic fact that this can't work.


-BTW we have a horrible minimum wage in this country, and we have routinely been cutting social safety nets recently. It is rough as hell outchea for the working poor

Yeah, I was speaking specifically to the two ideas mentioned in this thread, a 70k cap on salary and the $15 dollar minimum wage campaign. I'm against both.

I'm completely fine with this guy doing whatever he wants.

But no one has discussed a 70K cap on salary. Not in general or regarding this situation

Where are you getting this from? Did I miss something?

 

[johnnyredstorm]

You can't cap people's potential earning power that's ludicrous. This is the free market.

 

[RustyShackleford]

You can't cap people's potential earning power that's ludicrous. This is the free market.

I think dude is confused. No one is getting their salary capped in this situation

But like I said I may have missed it, but I didn't hear the CEO say anything of the sort