Run a big bank. Buzzfeed reports that James Gorman, head of Morgan Stanley, has been given an 85% pay increase, upping his income to $18 million. To put things in perspective, Gorman is credited with turning the company around, and he still makes less than Goldman Sach’s chief Lloyd Blankfein, whose annual compensation is $23 million. Still, in a time when most Americans consider a 3% annual raise to be normal, an 85% pay increase sounds like some people play a different game. That’s because they do. Momma, don’t let your babies grow up to be cowboys. Send them to a great MBA program that feeds investment banks. It seems that’s the only way to get ahead in 21st century America.
March 29, 2014
March 28, 2014
Cutting Commissions
One of the biggest challenges facing working people is wage cuts. For many sales people, most of their annual income is based on commissions. I met with a client today whom I’ve known for more than 10 years. He has always exceeded sales quota. In his current role he is both a manager and a sales representative. To save money, his employer is changing compensation. The current rate for commissions is 4.5% of sales. As of July that rate will be cut to 3.2%. When he took the job six years ago, the commission was 6.5%. This is not the first time his commissions have been cut.
When my client confronted his boss about the situation, the boss told him that the company was increasing his account base and that he could make as much or even more if he worked harder. These words were a deep insult to my client. In his time with the company, he has always exceeded sales goals and often has been ranked #1 in his region. Now he’s being asked to do more just to keep pace. Instead, he’s doing the smart thing: Looking for a new employer who will treat him fairly.
March 27, 2014
March 26, 2014
March 24, 2014
March 23, 2014
March 22, 2014
Walk Me Through Your Resume
In recent months several clients have asked me what they should do when an interviewer asks to be “walked” through a resume. There are two ways to address this request. The worst strategy is to start with your current job and go backward. This takes you away from recent experience or education that qualifies you for the position you are seeking. It is better to move from least recent to most recent experiences. The strongest type of response would not end with your current job or most recent degree. Instead, you would show how you are prepared to do the job you are interviewing for. Walk the interviewer into a place where she will want to offer you a job.
March 16, 2014
No More TIP wages?
Think Progress reports that some businesses are asking their customers to do something very odd: Stop tipping wait staff. Instead, these moral businesses are pricing their food and drink in a way that lets them offer living wages and benefits, which is a common practice in other countries. The article also notes that under the current tip based system, the poverty rate for restaurant employees is three times higher than other workers. If the average tip is 20% and the restaurant raised its price by that amount, we could be confident that hard working people are being properly compensated. Anyone who thinks that paying such a small amount is unfair has another option: Cook your own meals.
March 15, 2014
Wage Theft at the Drive Thru
According to Common Dreams, McDonald’s employees in California, Michigan, and New York are suing both corporate owned stores and franchisees for wage theft. The employees assert that their pay has been lost due to fraud that includes: doctoring time sheets, preventing employees from taking breaks, making them work off the clock and forcing them to pay for uniforms. The workers in these states are trying to come together in a class action suit that could cover over 30,000 employees. If large companies don’t want to pay their employees and don’t want to let them have union protection, the next step will be courts. What popular companies have to hope is that judgments in courts of law are not followed by a worse fate: conviction in the court of public opinion.
Billionaires and Workers’ Rights
Tags: 1%, billionares, Chicago Cubs, Citizens United, Huffington Post, Illinois Bruce Rauner, koch brothers, political TV commercials, politics, progressive, Robert Reich, unions
Writing in Huffington Post, Robert Reich explores the power billionaires like the Koch brothers and the Ricketts family, former owners of TD Ameritrade, current owners of a team I root for, the Chicago Cubs. Reich lays out the different ways these super rich families have used their wealth to influence politics. While Reich cites a Democratic billionaire and middle-of-the-road Michael Bloomberg as non-Republican super PAC bosses, most of the action is conservative. And it is anti-worker.
Rather than look at this as a conservative/liberal issue, it would be better to think about the growing influence of neoliberal ideology, which unites people like Democratic Chicago Mayor Rahm Emanuel and his former boss, Republican candidate for Governor of Illinois Bruce Rauner. Neoliberals believe that the public sector is always superior to the private. They also hate unions the way Joe McCarthy hated communists. These groups control the money, which means they control the media, which – as McLuhan taught – is the “message.” Most Americans distrust unions because they have heard the same propaganda for over 30 years. It’s gotten so bad that 35% of Americans are against raising the minimum wage. I wonder what percent would agree with reversal of the 13th Amendment?