Updated: Aug 20, 2019
No time to read? Listen to the Audio version on our podcast instead.
It's ridiculous that we keep having to debunk this lie told by Bernie Sanders and other alt-left leaders, but apparently it still needs to be done.
The CEO's pay does not affect the worker's pay.
Let's start with the truth. Yes- the CEO's compensation for Walmart and McDonald's are $22.9 million, and $22 million, respectively.
The issue with using this as a talking point is that what the CEO makes has absolutely zero bearing on what the low-level employees make.
Take Walmart for example..
Bernie Sanders routinely points out the fact that the CEO of Walmart makes $22.9 million per year, and the Walmart employees are paid "starvation wages." The argument is that "if they can afford to pay Doug McMillan $22,900,000 per year, they can afford to pay their workers $15 an hour."
The math on this is ridiculously easy, yet BS supporters still take this point as one of the main reasons minimum wage workers are paid so little.
Walmart has 2,200,000 employees, and their CEO is paid $22,900,000 per year.
How about we pay Doug McMillan $0 per year, and divide his wages out between the Walmart employees...
I didn't even have to turn my iPhone calculator sideways to tell you that each employee would get a whopping $10.40 from spreading out the CEO's pay. That's not per hour, that's per year, by the way.
Now we'll look at McDonald's
Honestly after extensive research, I've only found one credible source on Stephen Easterbrook's compensation, which totaled $15,900,000 in fiscal 2018. We're going to fly with the $22 million figure anyway because this point is just that easy.
McDonald's has 1,900,000 employees, and their CEO makes $22,000,000 per year.
How about we pay Stephen Easterbrook $0 per year, and divide his wages out between the McDonald's employees...
After dividing out his salary to the McDonald's employees we could give each of them $11.05 more per year.
Help me out here, but it seems like the CEO's compensation has absolutely no bearing on the hourly wages of the employees. Those figures divided out hourly equal around $.01 per hour (at a 15 hour work week) that could go to the employees.
The thing we're missing here is- What would happen to the company if they didn't have a competent CEO making the big decisions? Maybe you're not in the stock-market world, but I am. It's been seriously considered that Walmart will not survive the rise of Amazon, and that McDonald's will not survive the rise of brands like Chick-fil-a or Burger King.
If you work for Walmart, a company that operates on a net 1.8% profit margin, how crazy is it that each worker makes $.01 less per hour to ensure that there's a competent person making the decisions that keep the company alive? Is that really such an exorbitant amount?
Dear Bernie Sanders- Make your claims that workers should be paid more. State your claims that companies make too much money. Just please stop using terrible points (based solely on emotions) to make your case.
The CEO's pay has absolutely nothing to do with what the workers are paid.