Originally Posted by lamberts-lost-tooth
CEO's of Google say the same thing....and CEO Jim Sinegal of Costco is also all about the workers. After three years a typical full-time Costco worker makes about $42,000, and the company foots 92% of its workers’ health insurance tab.
82% of their workers are non-union.
He says “From day one, we’ve run the company with the philosophy that if we pay better than average, provide a salary people can live on, have a positive environment and good benefits, we’ll be able to hire better people, they’ll stay longer and be more efficient.”
A 2004 Business Week study ran the numbers to test Costco’s business model against that of Wal-Mart..... The study confirmed that Costco’s well-compensated employees are more productive.
The study also revealed that Costco’s labor costs are actually lower than Wal-Mart’s as a percentage of sales.... Its labor and overhead costs are 9.8% of revenues, compared to Wal-Mart’s 17%.
By compensating its workers well.... Costco also enjoys rates of turnover far below industry norms. Costco’s rate of turnover is one-third the industry average of 65%
A little homework will show that their are good/bad CEOs just like anything else in life.
I find this fascinating. I did read an article recently discussing the changing corporate culture and how the days of the CEO's getting golden parachutes are waning...
Of course there will be poor and bad CEO's, just like at any other position. But they wouldn't get paid as much as they do if there wasn't some worth to the position. When you are in charge for the entire direction of a public company, that's a lot of stress and responsibility.