The CEO of starbucks made about 21.5 million in 2014 (combined salary, options, stocks etc.)
Starbucks made 16.4 Billion in 2014
Starbucks employs nearly 200,000 full time employees and over 20,000 stores.
I often see Starbucks accused of overpaying their CEO (even though he is getting paid only .1% of the company’s revenue) and that they should pay their employees more instead of him.
So: What would happen if we gave 100% of the the CEO’s pay to all teh employees instead? How much per hour of a pay raise could we give them?
x 2,000 hours (40 hours per week for a year is 2000 hours)
= 400,000,000 paid hours in a year (that’s 400 million)
Let’s split up the CEO pay and give it to all those hours.
21,500,000 ceo pay
= 0.05375, OR 5 cents per employee hour.
This means that giving 100% of the CEO pay to all the starbucks employees would result in a whopping 5 CENTS per hour pay raise.
Put another way: The CEO of starbucks gets paid a full 5 cents per hour for every employee his company employs.