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stg81

(351 posts)
Fri Jan 31, 2014, 05:12 PM Jan 2014

Don't multi-million-dollar CEO bonuses hurt the company as much as raising min wage?

For that matter, what decisions a company makes are any different from raising the minimum wage?

Every deal for supplies, every decision about marketing, it all hits the bottom line the same way as raising wages.

Why should employees have to pay the price for management's bad decisions that has rendered the company "unable" to pay a higher wage?

13 replies = new reply since forum marked as read
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Don't multi-million-dollar CEO bonuses hurt the company as much as raising min wage? (Original Post) stg81 Jan 2014 OP
No. Believe it or not, those CEO salaries are tax write offs. PeteSelman Jan 2014 #1
Um so are labor costs no? Egnever Jan 2014 #2
I don't think so. PeteSelman Jan 2014 #3
According to this site they are Egnever Jan 2014 #5
I suppose they could pay everyone a ton then. PeteSelman Jan 2014 #6
The real problem as I see it Egnever Jan 2014 #11
Link, please n/t brentspeak Jan 2014 #4
Robert Reich said it. PeteSelman Jan 2014 #7
I read some time ago that in some corps top salaries can be as much as 2-3% of total profits. El_Johns Jan 2014 #8
What is it? It's called the arriogence of insiders Armstead Jan 2014 #10
Yes but the main difference is.... Armstead Jan 2014 #9
A mystery only crooks understand fadedrose Jan 2014 #12
The problem with wages isn't the executives, it's the law of supply and demand itself. reformist2 Jan 2014 #13

PeteSelman

(1,508 posts)
1. No. Believe it or not, those CEO salaries are tax write offs.
Fri Jan 31, 2014, 05:23 PM
Jan 2014

Because of measures put in during the Clinton era's financial reform.

PeteSelman

(1,508 posts)
3. I don't think so.
Fri Jan 31, 2014, 05:26 PM
Jan 2014

I don't think you can write off employee salaries. But I don't know for sure. The CEO crap I do know for sure.

 

Egnever

(21,506 posts)
5. According to this site they are
Fri Jan 31, 2014, 05:28 PM
Jan 2014
http://smallbusiness.chron.com/business-expenses-tax-deductible-4175.html

Direct Labor Expenses
All direct labor expenses are tax deductible. Direct labor expenses include the salaries and commissions of managers and sales personnel. Direct labor also includes the hourly wages and overtime payments made to factory workers. You can write off money you contribute to pensions and annuities too, according to the Internal Revenue Service.
 

Egnever

(21,506 posts)
11. The real problem as I see it
Fri Jan 31, 2014, 05:39 PM
Jan 2014

isnt really the tax structure though I think that could be improved. It is the model of profit before all else. I would argue the stock exchange is the biggest driver of of our income problems. When maximizing profit is your sole goal it is inevitable that labor suffers.

I have no idea how to change that model the only way I see to fix our problem is for labor to once again stand up and take matters into their own hands.

PeteSelman

(1,508 posts)
7. Robert Reich said it.
Fri Jan 31, 2014, 05:34 PM
Jan 2014

Either on his Facebook page or on one of the talking head shows. Sorry that I cannot provide it offhand. I'm sure it's out there on the web somewhere though.

 

El_Johns

(1,805 posts)
8. I read some time ago that in some corps top salaries can be as much as 2-3% of total profits.
Fri Jan 31, 2014, 05:35 PM
Jan 2014

Which would suggest that they "hurt" the company. But apparently the companies don't think so. Which suggests that maybe something else is going on, but it's hard to say what.

 

Armstead

(47,803 posts)
10. What is it? It's called the arriogence of insiders
Fri Jan 31, 2014, 05:38 PM
Jan 2014

If you're in The Club you're worthy of respect and Big Bucks.

If you're outside of that small circle, you're just a jerk who is not worth worrying about.

 

Armstead

(47,803 posts)
9. Yes but the main difference is....
Fri Jan 31, 2014, 05:36 PM
Jan 2014

that normal employees are just schmucky ordinary humans, while the CEOs and other top brass are.,..

SUPERHUMAN!!!!!!!!!

reformist2

(9,841 posts)
13. The problem with wages isn't the executives, it's the law of supply and demand itself.
Fri Jan 31, 2014, 05:41 PM
Jan 2014

And the minimum wage is not enough. We need new solutions.
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