The Los Angeles City Council voted Wednesday to approve a sweeping package of minimum wage increases for workers in the tourism industry, despite objections from business leaders who warned that the region is already facing a slowdown in international travel.
The proposal, billed by labor leaders as the highest minimum wage in the country, would require hotels with more than 60 rooms, as well as companies doing business at Los Angeles International Airport, to pay their workers $30 per hour by 2028.
Jessica Durrum, a policy director with the Los Angeles Alliance for a New Economy, a pro-union advocacy group, said business leaders also issued dire warnings about the economy when previous wage increases were approved — only to be proved wrong. Durrum, who is in charge of her group’s Tourism Workers Rising campaign, told the council that a higher wage would only benefit the region.
The CEO of Marriott made $5 million in 2022. In that year they employed 400,000 people. If the CEO got nothing the average employee would see a pay increase of $12.50 for the year.
CEO pay is never as big of a factor in employee compensation as you think.
I bet the $2.6 billion in stock buybacks they did that year could have went a long way for the workers.
That’s the point of the comment i think. Payroll isn’t where the money is made. It’s with monetary incentives that are very light on taxes.
Absolutely and that is the thing you should be focusing on as executive pay is rarely large enough to be why employees are getting screwed on pay
I agree that taking away the cash compensation of the CEO means very little in terms of increases for the average worker mathematically, but these executives are the ones making the decisions to do things like stock buybacks when their lowest level employees are likely seeking government assistance to make ends meet.
The cash take-home pay is only a part of their total compensation. It seems like they average about $15 million in equity each year. The disparity between the compensation between the CEO and the common workers is what is troubling.
The CEO has performance intensives that literally double their base salary based on metrics that are completely dependent on the increased performance of the lower level employees, who could only see that kind of increase in their wildest dreams.
Even with the total compensation you aren’t giving employees more than pennies.
To be clear that $5m was total compensation in my example. They would get just over $3 if it was just his 1.5 million salary.
https://www1.salary.com/MARRIOTT-INTL-INC-Executive-Salaries.html
$5 million is his cash income.
I’m not trying to argue that it would mean anything to not pay him. I just wanted to express my frustration that CEOs are actively rewarded and lauded for making decisions like stock buybacks when the actual backbone of the industry are looked at as drains on society because they require things like SNAP or rent assistance just to survive.
I mentioned 2022. You are talking about 2024. There are likely incentives and bonuses that account for that gap (beyond the effects of COVID which would impact 2022).
Regardless I agree overall that the workers should be paid more.
This is what was reported to the SEC.
https://www.salary.com/tools/executive-compensation-calculator/marriott-intl-inc-executive-salaries?year=2022
Anthony G. Capuano assumed the role of CEO in 2021 after the death of Arne M. Sorenson.