Sunday, April 05, 2009

Learning about salary mathematics

Here are some calculations to compare salaries :

10 000 000 / 50 000 = 200

The above example shows that if an individual earns 10 million a year compared to a worker who earns 50 000 a year, that individual who is earning 10 million a year is earning 200 times more than the worker who is earning 50 000 a year.

1 000 000 / 50 000 = 20

The above example shows that if an individual earns 1 million a year compared to a worker who earns 50 000 a year, that individual who is earning 1 million a year is earning 20 times more than the worker who is earning 50 000 a year.

250 000 / 50 000 = 5

The above example shows that if an individual earns 250 000 a year compared to a worker who earns 50 000 a year, that individual who is earning 250 000 a year is earning 5 times more than the worker who is earning 50 000 a year.

Why is it that companies that have been prosperous over the years have no capital left in their company?

This is because, some CEO s being "smart" as they are, are paying themselves the maximum they can until their company have no more capital left in their company. So what are they going to use as collateral when they borrow from the bank, only the companies' assets.

It is true that some companies which are expanding all the time will have no capital left in their company.

It is also true that companies that had huge capital reserves in the past had been raided for their capital reserves, so why would companies want to keep capital reserves in their company?

How do you differentiate crooks from genuine business failures?
Before a company is allowed to go into bankruptcy, a few things to examine :
salary remuneration to their top executives,
conflict of interest in the companies, etc.

so how to device regulations that show that because salary remuneration is excessive and not in the interest of the company that caused the company to go bankrupt.

It is always a case of integrity versus the crook... cases of police chasing after the criminal. What is criminal and what is not? Some are clear cut but many are not.

Capitalism and the poor worker ... more on this later

No comments: