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McDonald's Server Would Have To Work 550 Years To Earn CEO's Pay


Tyree Johnson, McDonalds worker

In a stirring Bloomberg BusinessWeek article, Leslie Patton tells the story of one McDonald's employee. His name is Tyree Johnson. The 44-year-old has worked at the fast food chain for two decades, yet still makes just $8.25 an hour, and doesn't get 40 hours a week of work. So Johnson has jobs at two Chicago McDonald's, scrubbing himself down in the bathroom between shifts, because he may be denied a raise if he smells bad. Twice a month he goes to church food pantries to stock up on cereal, soup and powdered milk.

Johnson would have to work for 1.1 million hours to earn the $8.8 million that McDonald's CEO James Skinner was paid last year. If he worked for 40 hours a week, every week of the year, that would take five centuries.

Retail And Fast Food: Fast-Growing Industries
Opportunity is bright, profits are soaring, and the jobs are horribly paid. According to the Bureau of Labor Statistics, retail sales employed 4.5 million Americans in 2010, and fast food restaurants employed 2.1 million. The annual salaries for these jobs are $20,990 and $18,070, respectively. And these are no longer part-time jobs for teenagers; the vast majority of workers are in their 20s and older, and many of them are raising families.

Employers Are Organized To Keep Wages Low
The service industry, unlike manufacturing, has very little history of its workers organizing to demand better pay or hours. Restaurant chains, on the other hand, are very organized at keeping pay down. As Patton points out, restaurant chains and their franchisees spent at least $960,000 to fight minimum-wage increases in six states in 2006.

Income Inequality Widens
Between 1978 and 2011, worker compensation grew by 5.7 percent, according to an analysis by the the Economic Policy Institute, a think tank that advocates for lower-wage workers. In the same period, CEO compensation ballooned by 725 percent.

Below is a list of 11 of the biggest fast food and retail chains, along with how long an average low-level employee would need to work to make the amount his or her CEO took home last year. It seems the annual worth of one CEO is now equal to many other human beings' lifetimes.

CEO compensation data are from the companies' most recent Securities and Exchange Commission filings. Average employee salaries are from Glassdoor.com. The number of years it would take an employee to earn the CEO's compensation is based on working 40 hours a week, 52 weeks a year.

11. DUNKIN' BRANDS

CEO Nigel Travis' total compensation: $2.0 million

Crew member: $7.83 an hour

How long a crew member would have to work to make CEO annual pay: 250,000 hours or 120 years


10. PAPA JOHN'S

CEO John Schnatter's total compensation: $2.7 million.

Average delivery driver salary: $7.19 an hour.

How long a crew member would have to work to make CEO annual pay: 382,000 hours or 184 years.


9. DOLLAR GENERAL

CEO Richard Dreiling's total compensation: $3,832,000.

Average sales associate salary: $7.62 an hour.

How long a crew member would have to work to make CEO annual pay: 503,000 hours or 242 years.


8. BEST BUY

CEO Brian Dunn's total compensation: $7.1 million.

Average sales associate salary: $9.73 an hour.

How long a crew member would have to work to make CEO annual pay: 730,000 hours or 350 years.


7. HOME DEPOT

CEO Francis Blake's total compensation: $10.8 million.

Average sales associate salary: $11.47.

How long a crew member would have to work to make CEO annual pay: 941,000 hours or 452 years.

6. MCDONALD'S

CEO James Skinner's total compensation: $8.8 million.

Average crew member salary: $7.65 an hour.

How long a crew member would have to work to make CEO annual pay: 1.1 million hours or 550 years.

5. CVS CAREMARK CORPORATION

CEO Larry Merlo's: $11.4.

Average cashier salary: $8.86 an hour.

How long a crew member would have to work to make CEO annual pay: 1.3 million hours or 619 years.


4. WALMART

CEO Michael Duke's total compensation: $18.1 million.

Average sales associate salary: $8.84 an hour.

How long a crew member would have to work to make CEO annual pay: 2.1 million hours or 986 years.

3. WENDY'S

CEO Roland Smith's total compensation: $16.5 million.

Average crew member salary: $7.66 an hour.

How long a crew member would have to work to make CEO annual pay: 2.2 million hours or 1038 years.

2. TARGET

CEO Gregg Steinhafel's total compensation: $19.7 million..

Sales floor team member: $8.29.

How long a crew member would have to work to make CEO annual pay: 2.4 million hours or 1,143 years.

1. YUM! BRANDS

CEO David Novak's total compensation: $20.4 million.

Average KFC / Pizza Hut / Taco Bell crew member: $7.50.

How long a crew member would have to work to make CEO annual pay: 2.7 million hours or 1,308 years.


Claire Gordon

Claire Gordon

Claire Gordon has contributed to Slate's DoubleX, the Huffington Post, and the book Prisons: Current Controversies. While an undergraduate at Yale University and a research fellow at Yale graduate school, she spoke on panels at Yale and Cornell, and reported from Cairo, Tokyo, and Berlin. Follow Claire on Twitter. Email Claire at claire.gordon@teamaol.com. Add Claire to your Google+ circles.

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McGuffin

Probably the worst compare and contrast piece I have ever read by an Ivy Leaguer. Seriously comparing a person who works part time and goes to school, high school or college, flipping burgers, to a CEO who is in charge of 33,000 restaurants and answering to stock holders. Seriously? Geesh!

April 29 2013 at 9:27 PM Report abuse rate up rate down Reply
wordwan

Something tells me that all large companies have this problem. The people that work for them are ALLOWING this to continue.

Make a decision. If you aren't getting what you need, find the real answer.

Heather
wordwan

April 17 2013 at 11:22 AM Report abuse rate up rate down Reply
bamatxchick

Not everyone of US in the Fast food industry is a LOW LIFE , DROP OUT THAT NEVER WENT TO COLLEGE. IF WE DID WE DIDN'T FINISH CAUSE WE THINK THE WORLD OWES us something. EVER HEARD OF THEM THINGS CALLED HEALTH ISSUES /!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
That's why I didn't finish college. Not cause I didn't want to or cause I figured somebody owed me something. Because I've got Epilepsy, being a professional student didn't seem like the intellegent thing to do, & you can't get a music degree online. I came home got a job at the Mcdonalds here & am moving up the management ladder. Currently I am Kitchen manager, but I am starting my training for my next promotion. Yes most of my crew is high school kids looking for a temporary job until they graduate. We have a few that attend the local Junior college that work until they transfer to a university. But we have a lot that stay because fast food is all there is in this 1 horse town population 2600. They choose to only be crew, I have been told management is too much for them. DO YA'LL NOT REALIZE THAT NOT ALL OF US ARE CUT OUT FOR COLLEGE?!!! I'm a teacher's kid . When is this country gonna realize that & LAY OFF OF THE FAST FOOD INDUSTRY!!! THANK THE LORD WE HAVE IT!!!!!

April 16 2013 at 10:39 AM Report abuse rate up rate down Reply
1 reply to bamatxchick's comment
wordwan

You're still part of the problem. You help promote a culture that is unhappy for a lot of people who work there. I know. I've done my time in the fast food industry. And I chose to be there. And I wasn't a university student going to school. And I ain't dumb. *grin* And I have eyes. And I saw what was happening. And I quit.

I was just reading about a similar culture in a fulfillment centre for Amazon.com, in the UK, that sounds like it's basically trading one sad industry for another--a lot of the people in that town lost their jobs when the coal mine closed.

Coal mines. Fast food. Fulfillment centres. I don't believe that's the way we are supposed to live. But presently, for a lot of unenlightened people, it's how we do. How sad for us; how terribly sad.

And there are a lot of issues that, one day, it's all gonna blow.

But not right now, I imagine. So enjoy your job. It's what you should do.

Be happy.

Heather
wordwan

April 17 2013 at 11:32 AM Report abuse rate up rate down Reply
Darlene

ITS TO BAD WHEN MCDONALD'S HAS A GOOD MANAGER THEY LET THEM GO AFTER 35YR. OF SERVICE WITH A KICK IN THE BUTT...HAVING HAD THE BEST RECORD OF SERVICE THRU THOSE YRS. WHEN THEY HAVE SOMEONE GOOD THEY DESERVE TO GO DOWN THE TUBES WITH COMPLAINTS...

April 16 2013 at 9:57 AM Report abuse rate up rate down Reply
1 reply to Darlene's comment
wordwan

Explain "good" in terms of McDonald's idea of a manager.

The only reason you get fired from a job like that is McDonald's can hire someone to replace you. Someone 'easier' to deal with. It's always about money.

Think about it. And that's the world you help promote.

Do something.

Heather
wordwan

April 17 2013 at 11:35 AM Report abuse rate up rate down Reply
robertmb56

Maybe the employee should go out and start their own company.

April 16 2013 at 7:54 AM Report abuse +1 rate up rate down Reply
mykitchenwv

Will the cost of product go up? Yes. Can this work to McDees advantage ? Yes. Tell the world why you are raising the cost of a burger 10 cents and french fries a nickel, etc. Do the math folks! Americans will react positively. Make a huge campaign out of it and make history.

April 15 2013 at 9:30 PM Report abuse rate up rate down Reply
1 reply to mykitchenwv's comment
wordwan

I wonder what the profit margins are at McDonald's. Anybody know?

I bet they're pretty high. I worked at a McDonalds with FIFTY employees. You don't need 50 employees. What you need is management that treats a business like an old style, profit-based, everyone wins kind of business. Not like cattle, to be abused. Just because you 'can'.

But take note, employees abused McDonald's too. It was a lovely dysfunctional place to hang out!

50 employees. Count how many people you see on shift the next time you go to a McDonalds. And don't talk to me about 24 hour shifts. If you can afford to pay a decent wage in an 8 hour shift, you extend your hours. If you can't afford to pay a proper wage, DON'T be open past, oh, 11 to 7, in my view.

That's about abuse. Of people. And money.

Always about the money.

Heather
wordwan

April 17 2013 at 11:48 AM Report abuse rate up rate down Reply
Brittny H

The issue isn't the low compensation, actually... The issue is more the fact that a dollar today won't buy what a dollar did 30 years ago. If we increased the value of a dollar, people wouldn't be so hyped over earning minimum wage.
It's hard to find good, "well paying" jobs. I don't begrudge the CEO as much as most. I don't think they (or any sports person or celebrity) really should get millions and millions of dollars, but they're getting it because of the executive decisions they've made. Hence the title.
Another issue is the ability to move forward in a company. You can't move up unless there's room for you to move up. Case and point.

April 15 2013 at 9:21 PM Report abuse rate up rate down Reply
1 reply to Brittny H's comment
wordwan

Sorry. I beg to differ.

I didn't even know so many CEO's of these large companies were making SO much as a salary. Pretty typical of the U.S. though, I suppose. Why should he operate any different than a money lender in a bank? It's always about money.

And besides, money has the same value to them as it has to you--you seem to overlook that point when you talk about minimum wage.

And for the sake of argument, minimum wage is a concept. A consensual reality we choose to employ in this world, completely overlooking the possibility that a company may or may not be able to sustain such an idea. But that's another issue; I'm getting off track

Let's not discuss inflation. That is such a deep issue, it's not funny. Most of the world, right now, is starting to blow up due to how we deal with debt.

Back to the topic at hand: Do you know how that CEO got that salary?

Paying someone to work minimum wage selling McDonald's hamburgers. The money doesn't appear by itself. Just like outsourcing work to third world countries. If you work at a minimum wage job, I guess, you are working in a 'Third World country'...right there in the U S of A. Wow.

THINK ABOUT THIS. The only way that CEO makes money (besides McDonald's making money collecting rent on franchise properties) is someone like YOU selling burgers. They don't even give you a free lunch, do they? Can you imagine how little it would cost to FEED you during your shift? They probably throw AWAY as much food, every shift. I remember a guy who used to go around the table, clearing up, but taking the left over food. To EAT because he didn't get enough hours to realistically support himself.

Wooh. What abuse!

That's it. That's all. And if they, or Amazon, or any other company can make that kind of money, you should have a decent part of it.

Not minimum wage.

In fact, I read a great idea one day: Wage caps. Never mind minimum wage. For any job with employees, without benefits or even guaranteed work, their should be 'maximum wages' for anyone involved in that ecosystems.

Including CEOs.

Heather
wordwan

April 17 2013 at 12:08 PM Report abuse rate up rate down Reply
ch.53de6391

My opinion, first, being a fast food server isn\'t an occupation meant to provide the sole income to support a family; in my eyes it is meant to supplement a family income. The only person working at a McDonalds over the age of 27 should be the manager. Working as a fast food server to me is a first time job for a kid in highschool to learn solid work ethics, or a for a person to work their way through college. If your 30, working at McDonalds as a server and think you’re going to make a career out of it at that position, shame on you. Quite thinking the world owes you something, get some education behind you (Hell, if you’re an illegal alien or an “Anchor Baby” the “Dream Act” will pay for most of your education) and move up through the ranks. If you don\'t like working for min wages, start your own business or find another job. Either way, get off your duff and seek self-improvement.

April 15 2013 at 3:47 PM Report abuse +2 rate up rate down Reply
1 reply to ch.53de6391's comment
wordwan

Have you ever worked at a McDonalds? Have you ever had a job? Or are you simply on this board trolling an opinion that has no basis in reality?

People need jobs. Since when do people stop needing jobs after 25?

I would guess you are here for the enjoyment of the high and mighty. The so-called "intellectuals" who have no idea what is going on in the real world.

Have fun. I ain't touching ya.

Heather
wordwan

April 17 2013 at 12:14 PM Report abuse rate up rate down Reply
cards4sue

Equal pay for equal work! Oh...wait....the servers at McDonald's aren't doing the same work as the CEO, are they? Well, then I guess they don't deserve equal pay, do they?

Why is it that we hear so much about CEO salaries, but nobody complains about the salaries that sports stars are getting? Think about it... they are getting huge salaries for merely playing a game, and Americans are willing to pay to watch them play it, never complaining that they are getting rich off the fans that fork over $30 for a ticket, or $60 for a souviner jersey, or $8 for a hot dog at the stadium. Why don't we demonize these people like we do the CEOs?

And let's not get started on actors, who make a few movies, and are set for life. We let them get millions and millions of dollars in residuals, watch them treat everybody like crap, and Americans still worship them.

Grow up, work hard, and stop your complaining. At least you have a job. Don't like it here? There's plenty of countries with much larger unemployment numbers, and no government money to lean on. Try looking at those LESS fortunate than you and do something for them, rather than looking at those that have worked their way into a good position and eabout how unfair it is that they make more than you.

I read today that a child dies of hunger every 15 seconds in the world, and you're complaining because your low paying job isn't good enough?

It's time that Americans change their perspective and start being thankful for the opportunities that we ALL have to improve ourselves, and then start acting on those opportunities. Stop putting your hand out, and put it to work!

April 15 2013 at 3:35 PM Report abuse +1 rate up rate down Reply
1 reply to cards4sue's comment
wordwan

My dog, are you real?

Come work for me. I'll pay you nothing. Maybe that will smarten you up and help you focus on the fact that a BUSINESS should pay its employees fairly. Simple idea.

Don't put the problem of the rest of society's interest in luxury items on the backs of a person who is doing the very job that SUPPORTS a CEO's salary.

I'm not working minimum wage so a ball player or an actor can have a big salary. I am not part of his ecosystem. But a McDonald's employee is supporting his CEO.

Focus.

Heather
wordwan

April 17 2013 at 12:20 PM Report abuse rate up rate down Reply
Rapier

Just out of curiosity...what is the experience, education and skill set of the two individuals, along with job requirements? If you want to compare pay, let's compare jobs and individuals.

April 15 2013 at 2:40 PM Report abuse rate up rate down Reply
1 reply to Rapier's comment
wordwan

NO one does a job that requires that they get paid only minimum wage.

NO one does a job that requires the they take the LION'S share of the money in an ecosystem.

Try that idea.

Heather who'd take a good minimum wager worker over a CEO any day.
wordwan

April 17 2013 at 12:22 PM Report abuse rate up rate down Reply

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