Quote:
Originally Posted by Llarry
Quote from Robert Reich, former U.S. Secretary of Labor:
"Why are we talking about whether paying fast food workers a better wage will drive up the cost of a Big Mac instead of asking how much McDonald's CEOs $17.8 million salary is driving up the cost?"
In my opinion, the CEOs and other senior executives of successful corporations should be well-compensated, but I think the numbers have generally gotten way out of hand in the past decade or two.
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Well Zippa states there are 1,336,229 McDonald's crew members in the US.
Average wage is $26,648.
$26,648 times 1,336,229 is $35.6B a year in crew members' wages.
McDonald's sells 2.5B hamburgers a year.
The CEO:
$17,800,000 divided by 2,500,000,000 is $0.00712 per burger to pay the CEO's salary.
The crew members:
$35.6B divided by 2.5B is $14.24 per burger to pay the crew members' wages.
Sure that $35.6B (and $17.8M) is amortized over all food/drink items sold at McD's not just burgers and both numbers drop by at least an order of magnitude when all food/drink items sold are factored in.
But it does provide some idea how little the CEO's $17.8M salary affects the cost of a burger (any food/drink item) compared to the $35.6B wages of the crew members.
Might add just bumping the crew members' hourly rate by $1 to $13.81 costs McD's an additional $2.7B a year.
Increasing the crew members' hourly rate to $20 would cost McD's an additional $19.9B a year.