Amazon’s market capitalization recently hit $1 trillion, placing the e-commerce giant on a level of success shared only with Apple. What’s more, last year the company’s revenue topped out at $178 billion, about a 40 percent increase from 2016. These factors allowed CEO Jeff Bezos to claim the title of world’s richest person as his net worth climbed past the $150 billion mark.
According to critics, though, Amazon’s workers have been largely left out of this bonanza of profit. Continue reading
Much like this year’s Thanksgiving season, the last week of December will see record numbers of travelers hitting the road or heading to the airport for the holidays. Along with more than 97 millions drivers, AAA estimates that some 6.4 million people will fly to their destinations. Due to a computer glitch, however, thousands of passengers who booked flights with American Airlines nearly missed out on being a part of this massive crowd of travelers.
The company’s problems came Continue reading
For those who enjoy a full-service experience when they travel, staying at a hotel can turn into an expensive enterprise. Paying for gratuity alone can become costly if someone takes advantage of amenities like room service or bellhops. But while guests are quick to tip waiters and baggage carriers without a second thought, this same courtesy does not often extend to housekeeping staff. According to the American Hotel and Lodging Association, fewer than a third of guests leave gratuity for Continue reading
In 2010 the median salary for the 200 highest-earning executives in the U.S. topped out at nearly $10 million. Just five years later, though, that number doubled to almost $20 million. Meanwhile, researchers at the Economic Policy Institute found that CEOs in 2013 earned more than 300 times the salary of average workers. For comparison, in 1965 chief executives brought in just 20 times more pay than their average employees.
To combat this increasing inequality, last week government administrators in Continue reading
For years, CEOs at large corporations have attracted the public’s anger due to the exorbitant salaries that many executives earn. Companies counter these complaints by explaining that high-level employees only make their millions if they perform well on the job. After all, the stock options and bonuses that often form the bulk of CEO pay only become available once the company clears a certain set of financial benchmarks. This supposedly gives executives more incentive to do a good job since Continue reading
For more than a century tipping has been the preferred method for American restaurants to pay their servers. The idea is that customers will tip more if they receive good service, thus giving employees incentive to do well. However, the system doesn’t always work out that way. Besides getting outright stiffed by diners, on slow nights servers can earn as little as $2.13 an hour, the legal minimum that tipped employees can be paid. Given these less than ideal outcomes, Continue reading
At many large corporations, top executives earn as much as 80 percent of their salaries from performance-based bonuses. The idea is that CEOs will be more likely to do a good job if the company rewards them for success, such as increasing quarterly earnings or raising share prices. According to a new study from the London Business School, however, this widely accepted strategy might not be as effective as many companies think.
First of all, the study argues that contingent Continue reading
Near the end of February, the Wisconsin legislature passed a controversial bill that could change the face of labor in the state. Under the new “right-to-work” law, employees in unionized, private sector workplaces can choose whether or not to pay their union dues. According to Governor Scott Walker and his supporters, the law grants more freedom for individuals to choose where they work. “This legislation will ensure that Wisconsin’s workers have the sole power to determine whether they wish to Continue reading
In 2013 CEO compensation at the nation’s largest companies grew to 204 times higher than the salary of the average worker, a 20 percent increase since 2009. But the enormous wages paid to American executives is far from the only financial perk they receive. Along with inflated salaries, CEOs also enjoy lucrative retirement plans that can see them net tens of millions at the end of their careers.
For instance, Gregg Steinhafel recently stepped down as CEO of Target Continue reading
For years, Walmart has been criticized for not adequately sharing its success with its employees. After all, the retailer is not only the largest private employer in the U.S. but also the largest retail chain in the world. With so much capital at its disposal, critics have long argued that Walmart has enough resources to spend on its staff. And now at long last it appears the retailer agrees. Last month Walmart announced a plan that will raise the wages Continue reading