This story is incredible

A founder unilaterally imposed a minimum wage of $70,000 across his company and dropped his own salary to the same level.

https://www.bbc.co.uk/news/stories-51332811

The effects on his workforce are astonishing. 

I like this guy’s style tbh. I think that, in a world where returns to labour are under constant pressure, it’s wise and a little bit brave of business founders to lay down a marker early: we reward our staff well and we ensure that our workers receive a fair share of the value their labour creates.

It adverts pressure later. Hopefully people who favour oppressive free market remuneration strategies will invest their money elsewhere and bother someone else with their petifogging about “margins”.

Easy for him as he's minted. I wouldn't do it for £50k, I've got a mortgage to pay.

So has he dux. He had to remortgage and then airbnb his house out to pay for this.

"After crunching the numbers, he arrived at the figure of $70,000. He realised that he would not only have to slash his salary, but also mortgage his two houses and give up his stocks and savings. He gathered h"

I think it's brave and there should certainly be a levelling of wealth, but this is a bit extreme.

Why? Pay everyone decently and they will generally respond brilliantly. You get loyalty and productivity and best of all avoid the khunts who want yo the greasy pole for the wrong reasons that is one of the greatest scourges of our capitalist system and the enemy of business. 

This is a great story. 

But its not realistic for most businesses and you cannot buy loyalty or productivity with just money. 

 

I think he sounds amazing 

his mate who was hiking with him was clearly hoping for a more direct solution to her problem tho. She should have called teclis 

Would be surprised if he's not also a majority shareholder taking dividends and benefitting from share value increase.  Which is perfectly legit but reporting on salary only feels like only part of the picture.

 

You actually really can buy loyalty and productivity.

What Sorry said.  While I think it's brilliant, he will still own the stock which presumably is increasing in value.  And that's great the increase has come from more equal worker status, but describing it as the owner literally getting down with the shitmunchers seems wrong.  There is nothing in the story about the company being distributed in terms of ownership, which there would be if it had happened.

"should have called teclis"

So many solutions from that bit of wisdom.

 

*calls teclis*

The imminent foundation of Laz LLP has got me thinking about the principles on which I’ll run a business. Certainly, anyone we employ will be paid a London Decent Professional Salary which means enough to educate the kids privately, buy a house not outside Zone 3 and an upper medium bracket SUV, and enjoy a minimum of two premium 2Es a day and two ski trips a year. I’d expect to pay nobody less than 200K a year tbh. We’ll justify this by making a lot of money, which we’ll achieve by being really, really good at our jobs. Our offices will be amazing, with hot receptionists (of both sexes), and BINS EVERYWHERE that’s right at Laz LLP you will still be able to throw something in the bin. We will have a first class only travel policy - like a good PE house, we will want everyone to know we roll high.

Right, so your receptionists will boss double-ton. How much is that going to cost? [/strutter]

Don’t be daft. Support staff aren’t “people”. Duh. 

enough to educate the kids privately, buy a house not outside Zone 3 and an upper medium bracket SUV, and enjoy a minimum of two premium 2Es a day and two ski trips a year.

200k is not enough for that. 300k perhaps. 

All sexes of hot receptionists, you antiquated, sexist, racist, gammon-faced, liberal elite, capitalist, baby boomer, white, male, fat fucking bastard.

What the others above have said - he is the majority owner of this company. Depending on dividends, that may not translate into present cash, but he will have a medium term exit plan that will net him millions of dollars.

Not that what he did was not great, but it's not like he is suddenly in the same boat as all those employees.  

we know one another then, sorry?

PS - NO one, not even he, is saying that he is not building up equity and money. 

 

HTH

 

enjoy a minimum of two premium 2Es a day

Forgive me, but what is a 2E, premium or otherwise?