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  1. #1 Now i want to put those high executive salaries in to perspective 
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    I am sorry for a second highly complicated post. I think i have finally let some of the assholes on DU get to me with thier insane "logic"

    ok you have a made up corporation called A Corp. A Corp makes widgets and is a U.S. based company with 50,000 employees and 5.4 billion in sales (calculated below). A Corp has 30,000 employees working on manufacturing lines making widgets. wdigets can be made by one indivdual.
    A Corp is a publically traded company and its average share price for the year is $5.00

    a typical widget maker on A Corp manufacturing floor makes $20.00 per hour.
    so if he works no overtime he makes (50 weeks * 40 hours = 2080 hours times $20.00 per hour= $41,600.

    A single widget maker can make 5 widgets a day and widgets sell for $50.00 per widget.

    360 days times 5 perday by each widget maker x 30,000 widget makers selling for $50.00 per widget equals 5.4 billion in revenue.

    so a single widget maker makes 1,800 widgets per year and each widget sells for $ 50.00 so he basically generates $90,000 in revenue. his salary is $41.600 and lets add 10% for benefits. so his total cost is $41.600 times 1.10 = $45,760

    so he generates $90,000 in revenue and costs $45.760 basically a return of 50% on investment.

    A Corp has a CEO that makes 2.5 million in base salary. lets say he gets a 2% bonus on accounting net profits and also get 50,0000 shares of stock per year.

    based on his strategic decisions the CEO of A Corp is responsible for generating 5.4 billion in sales.
    his cost is 2.5 million plus lets say because of executive perks the percentage of his benefits are 20%

    2.5 times 1.20 = 3.75 million

    let's calculate his return 5.4 billion in revenue that costs 3.75 million is a net profit of 5 billion
    is a great percent return on investment.

    so in my book paying the Ceo 2.5 million to generate 5.4 billion in revenue and getting a 2000 times return on my investment makes alot more business sense then getting a 50% return on my investment.
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  2. #2  
    eeeevil Sith Admin SarasotaRepub's Avatar
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    So basically they are bitching again about high CEO salaries and how they aren't worth it but every slub in a factory shoud be making 50 bucs an hour??? :D
    May the FORCE be with you!
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  3. #3  
    Senior Member Dan D. Doty's Avatar
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    Cseeman, I'm not picking on you, but have you been taking a lot business and accounting courses lately?
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  4. #4  
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    Not anymore then usual.

    I have been in a program where as at the completion of said program i will earn a PhD in Accounting for about a year now.

    I also earned a Masters in Economics in 1996, Masters in Accounting in 2002 and an MBA in 2008. Also I have been a CPA since 1992.

    I have a pretty extensive background in financial leadership having been a CFO for about 4 different companies.

    I have not been a "steady" poster to this site over the time i have been a member here. Most of the time i come to this site just to read what is posted. I also spend time over at DU but i have been "banned" from posting there for sometime. However i stiill go over there just to read the postings.

    That is a summary of me, hope that answered your question
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  5. #5  
    Zoomie djones520's Avatar
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    Cseeman. Read the rules of the forum.

    http://www.conservativeunderground.c...ad.php?t=41658
    In most sports, cold-cocking an opposing player repeatedly in the face with a series of gigantic Slovakian uppercuts would get you a multi-game suspension without pay.

    In hockey, it means you have to sit in the penalty box for five minutes.
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  6. #6  
    eeeevil Sith Admin SarasotaRepub's Avatar
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    Quote Originally Posted by djones520 View Post
    Cseeman. Read the rules of the forum.

    http://www.conservativeunderground.c...ad.php?t=41658

    I was being nice. :p:D


    But seriously Cseeman, you know how we do this forum so lets stick to it please.
    May the FORCE be with you!
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  7. #7  
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    Sorry this was more of a rant against the people over at DU then a reaction to any specfic posting.
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  8. #8  
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    Wow this is the first time i have been scolded since i left High School.......
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  9. #9  
    eeeevil Sith Admin SarasotaRepub's Avatar
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    :D:eek::D
    May the FORCE be with you!
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  10. #10  
    Senior Member Dan D. Doty's Avatar
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    Quote Originally Posted by Cseeman View Post
    Wow this is the first time i have been scolded since i left High School.......
    You're not in trouble until you start liking the scoldings ... then its $200 an hour :D
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