Payment Structure

I’ve heard and read a lot recently about how companies structure their payments, which employees get what and how much should a CEO be paid. For one thing, I agree with California trying to enforce a maximum difference between a CEO’s salary and lowest paid employee. I don’t think it should be compared to the average salary but the median but it’s a good direction. I know that the community sharing type of structure isn’t for everyone but I like the idea of employees sharing in the benefits of a company like the way pirates divvy up treasure: everyone gets one part. Maybe team leaders get two or three parts. Higher management gets five or six parts. The chief officers might get eight or even ten parts. The point is, after you determine how many parts there are, you divide the revenue. This way, even the lowliest employee benefits when the company is doing better. The top brass earn the most because they do the hardest work, but every employee is invested — and rewarded — in the company being successful.


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