The CEO is Paid Less Than the Rest of the Team

The CEO is Paid Less Than the Rest of the Team
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[@wmillera]

4.3 million divided by 35 employees is about 123k of revenue per employee. If she is making 120k and everyone else makes more….. something doesn’t add up. The business would make 0 profit

[@tylerdryman]

her story is all over the place she's leaving something out

[@kellyinfanger9192]

No kidding, especially when $120,000 after payroll expenses is probably around $180,000.

[@millsathn]

“We’ve done 4.3 this year”.. so maybe she means $12 million per year. Guessing.

[@thomashind4835]

I was thinking the same thing. Sounds like they need can a couple “C-Suiters”….starting with her if she can’t even answer basic questions pertaining to the call.

[@turbocobra]

I was coming to the comments to type out this exact math. And Dave is congratulating them on the $4.3M revenue with 35 employees…. Yea your company is upside down with those numbers….

[@peterrose5373]

Listening to this person present the situation, I'm about convinced they gave her the CEO slot to get her out of the way. I also wonder whether this is a business or a charity.

[@InspiredByReason]

No one in this situation sounds competent enough to be running a profitable business.

[@fortyninehike]

I wouldn't trust my kids with them

[@roylogan51298]

It's probably government subsidized

[@elginnelson7934]

I know little of business management, but Dave's advice seems well-reasoned and easy to follow, especially considering what a complex number of factors could be involved.

[@jameskrause8414]

She makes $125k and she’s paid less than the teachers???? What company is this?! 😂

[@todd5687]

she said its teachers for disabled kids that's big $$

[@fortyninehike]

@@todd5687 Sounds like there's more to it too. Probably travel expenses and others included in compensation. She also said the "weekly pay" is higher. I'm sure she's getting bonuses that they aren't but she "feels" like her paycheck should still be higher. As a previous comment stated "4.3 million divided by 35 employees is about 123k of revenue per employee. If she is making 120k and everyone else makes more….. something doesn’t add up."

[@stevelarson6384]

4.3 million for a 35 person team seems like terrible revenue generation ratio......need to generate more revenue.....

[@stevelarson6384]

if all 35 people making more than 125K means straight payroll (not employer taxes benefits etc) running more than your revenue...... (35*125=4375)...so is the company even making money? if losing or a non-profit no raises for anyone.......

[@NDcompetitiveshooter]

Yeah, I have a suspicion that this "CEO" is getting paid well enough for being a basic manager of an organization the size of a large Burger King. Also, she is not likely super qualified as CEO since this basic math seems to elude her and she doesn't have specific data as far as how much her services are actually worth. The founder probably got emotional because she herself doesn't hardly get paid anything and the financials are crap. The consistent references to her being in the C-suite of a 35 person organization make me wonder how much she is interested more in title and financial status rather than fairness and the health of the organization. Sounded like the 4.3 million was gross revenue (which is terrible considering their overhead) and Dave was thinking it was profit.--which I highly doubt.

[@happyday2765]

​​​@@stevelarson6384 I think you're misunderstanding. She said 4.3 M this year. It doesn't sound like this figure is a per year amount. If they're at 4.3 million so far this year, they're probably more in the range of 11-12 million or more per year.

[@sleepyjoe1685]

Her salary is dependent on profitability. It sounds like it doesn't have a good profit margin. Good luck finding a job as a teacher that pays more.

[@delespai5592]

This lady is exhibiting very little assertiveness and leadership skills. I think "CEO" might be a stretch

[@ganymedehedgehog371]

“Doesn’t want it to come across” and “doesn’t want to be confrontational” I don’t understand how she got this high up if she can’t have a conversation.

[@TacticalStrudel]

⁠@@ganymedehedgehog371it’s a 30 person company and the leader is clearly an easily threatened individual. Weak/bully owner/board members put meek people immediately below them. At my old company the second level of leaders were all spineless doormats. The reason was the founding partners were narcissistic bullies who would not tolerate independent thought from their subordinates.

[@hardchooligan]

125k a year is a lot in Wyoming. I thought she was going to say like 40k

[@gorkyd7912]

Depends. Is this Jackson or Rawlings.

[@Alex-mj5dv]

Here in the U.K. if you’re CEO of an SME (and also founder and owner / shareholder) that’s a early stage or under £10m revenue and maybe £2m EBITDA it’s often likely you don’t take a salary at all. Especially with 30+ employees. I would gather if it’s education the payroll is no more than $1.75m, let’s say all are averaging $50k base with some OTE structure in there for sales and BD staff. Taxes $2m. It can’t afford for her to be on $150k+ too, in the ‘usual’ way. A director’s loan for example is less of a tax burden for the business. It’s not a dividend, salary or expense. The business obviously can’t afford a c-suite level salary on the payroll in literal cash flow terms.

[@Rocko1II]

If the others are sales maybe.

[@wisnoskij]

Well sometimes people get paid with impressive sounding titles. And some businesses basically run themselves but they need a few people in the office to answer phones and collate payroll, receipts, and invoices. If the people bringing in the money can do so with an under educated undertrained underpaid CEO in the office, why ask for better?

[@DEVUNK88]

If your confident and have data it may help you break through whatever defenses your owner has put up. If the owner isnt actually a bully and just has a blind spot in their business knowledge you may actually be able to kindly learn her something and help her improve and become better. If that doesn't happen you'll feel better knowing you left a toxic situation.

[@gorkyd7912]

CEO is not a position you can really ask for a raise based on the fact you're the CEO. You make a proposal with a set of goals you will accomplish for the company. The compensation you then ask for is in the context of those accomplishments. I.e "I have a 5-year plan to increase profit by 3 million annually. My pay will be only $2m across that time frame."

[@sarah345]

If she makes $125k and everyone else makes more and there’s 35 of them, that’s more than $4.3 million….

[@gorkyd7912]

She makes less than SHE was making as a teacher. Don't think that means everyone is getting more than her now, though some of the other teachers are making more.

[@fortyninehike]

She clarified that their "weekly pay" was higher. This sounds stupid but this women isn't coming off to me as competent so I'm thinking she specifically means her paycheck was higher and now that she's CEO her compensation isn't entirely based on hours work anymore. I think she just wants a higher paycheck and isn't thinking in terms of total pay.

[@michaelwoods4495]

Are the workers paid a portion of their billing (a bit like sales commissions)? If that's how this comes about, then the higher pay of the workers is justified by their production.

[@gorkyd7912]

Typically the employee is paid based on the market and it's solid pay, you get the same amount every year. The CEO gets paid a salary also but it should be largely tied to performance. A lot of CEOs would this kind of job for $1 up-front and then get a bonus based on accomplishing the actual revenue or growth goals.

[@michaelwoods4495]

@@gorkyd7912 Yes, you're right. I had the impression, though, that wasn't the case here. Conclusion--we don't have enough information to make a judgement, just observations as we've done.

[@NZStu]

Owner might be looking to sell the business so they don’t want to increase the operational cost. Might be time to ask to buy them out (owner finance - paid out with future earnings over a set number of years)

[@oshkoshbegone]

If Dave got paid less than his employees and couldn't brag he would probably explode.

[@harleyharleyharley]

This sounds like a Seinfeld episode that George is in charge of operations. 🤔

[@clabeauxdave8709]

Once again, Dave reveals his financial incompetence. He says $4.3 million is a lot of revenue for 38 employees or each making at least $125,000 a year. The company is literally losing money and the owner is making zero dollars

[@ctclardy]

Is the CEO adding value and profit to the company? Is she making or beating her revenue goals? If she is she needs to present to the board what she has accomplished in a well-laid-out systematic presentation and then request a raise based on her accomplishments. If they reject her request she needs to determine whether or not she still wants to be employed there. If they do not recognize her accomplishments and pay her accordingly they obviously see little to no value in her.

[@gorkyd7912]

Yep. It shouldn't be a "hey, could I have a raise please because I'm the CEO?" It should be, "this is what I've done already, here's what I plan to do next year(s), this is what I want in compensation."

[@ctclardy]

@@gorkyd7912 Absolutely! One thing you mentioned is an imperative... what is her plan for the future to maintain growth and increased profitability?

[@wafflewafflegod]

How is this woman a CEO?! She doesn’t exude an ounce of executive presence. Sounds more like a supervisor level of a strategic mind in an organization with title inflation.

[@denisefinney8459]

Unbelievable... And I'll leave it at that.

[@tomsassurance]

How do we pay people like this to lead us?

[@trigunstudios217]

Every company employs the same gal: Miss Management. She runs things 'round here.

[@skatarx69]

You dont want it to come across confrontational…. Thats why you get paid nothing.

[@cantgetright742]

She didn’t get that money because they’re hemorrhaging money. They’re hemorrhaging money even if everyone else made the same amount. They maybe need to cut the 3 suits loose. Pay someone a little bit more that can actually make some money.

[@HoundDogCatia]

Maybe, but this sounds like a 100% services business and I am guessing they are getting paid rates dictated by insurance companies or government agencies. Profit margins will be thin, and it will be about volume and being able to bring in lower paid (less experienced) teachers.

[@cantgetright742]

@@HoundDogCatia or cut those 3 that haven’t made a dime and get one that can and pay em 225k. That gives you another employee and 25k in the pocket annually.

[@rjrguitar]

Basic math. The less the owners pay the three "C-Suite" people, the more the owners put in their own pockets.

[@cantgetright742]

What’s left over? $125,000 times 35 is 4.375 million. And that’s just labor. Surely there are more expenses. They need more than 5 million just to break even. Maybe those 3 should be fired. That would take care of that. Because they’re not making any money. And STILL aren’t making money even though they did this last year too.

[@HoundDogCatia]

​@cantgetright742 I would assume that $125k was not the average salary of all 35 teachers. It is probably the higher end.

[@cantgetright742]

@@HoundDogCatia idk she said she was one of the lowest paid people. Does it even matter because even if they’re close, they’re still way out of budget to be making any money. And at that point, what she said just wasn’t true.

[@kennykuhns9843]

The CEO seems really weak. How did she rise to that position?

[@wisnoskij]

It sounds like she was under-performing as a teacher, but they did not want to fire her.

[@user-er1bh5oq9y]

She is overpayed for a non profitable business. Having a high fancy title doesn't mean you should get more money with no output.

[@jrowlet]

How do you know that the business is not profitable?

[@DMS20231]

A non profit can be very profitable, generally speaking, for its owners. Who said it was non-profitable? She didn’t. Are you stuck on stupid? There are non-profits whose boards and CEOs make nearly a million dollars per year.

[@TacticalStrudel]

Get out of there, this is a toxic workplace. I dealt with the same thing, bosses and a board that would get emotional and upset over legitimate business questions.

[@gorkyd7912]

Disagree. These are some of the best places to work, people who take their business and responsibility really seriously. There's more drama, can be frustrating, but if you work through it you'll all be better off. But seriously, if she is the CEO and she can't leave, get a loan, and remake that entire company with herself as owner in 3 years and snipe a bunch of the high-paid teachers then she doesn't have a lot of bargaining power.

[@stevenwalker4923]

You need to be confrontational. You're the CEO. You should have a pay package that is better than your front line employees. There's a reason for it. YOU'RE EXPECTED TO ALWAYS BE AVAILABLE. When you're CEO, you should be putting most of your day into work. It's not a 9-5 job. It's a leadership role and you're expected to learn and know EVERYTHING about your business, how it operates, your employees, and build relationships with your clients and stakeholders. Sounds like this person was just given a show title so they can push the work onto those three people. Make them do all the work. Just a glorified manager. Typically, the CEO, CFO, and COO are part of the board of a company. They usually have been given some ownership stake in the company.

[@autumnnakkula60]

So the teachers make more than 120K a year?? She said she makes less than teachers?

[@rockstar-kp2jy]

Depends on the area. Most don’t make that much.

[@kbrizy7490]

After taxes, there’s probably $75k left over to pay the teachers.

[@lionheart93]

@@kbrizy7490no lol more like 90k

[@mikehallrealestate]

They’ve got revenue and staff bloat issues

[@JB-uk7mn]

If he isn’t, quit and start your own team

[@user-ec3rm9wr1n]

Literally me 😂....

[@JB-uk7mn]

@@user-ec3rm9wr1n same

[@kurtiscommerce3999]

If this is the CEO of a 4mm company and she argues her case or states facts in this way…. At $123k - she is overpaid. Lol

[@goesinevent]

Dude, CEO makes 120k?

[@robertstanley980]

Dave, do the math. Ain’t making no money

[@happyday2765]

How do you figure? She didn't say 4.3 M per year. She said they've done 4.3 million this year. There's still 8 months of the year left to go. They're most likely doing much more than you're thinking.

[@gorkyd7912]

@@happyday2765 Usually "this year" means last 12 months in business terms, not the literal partial calendar year.

[@mariorichardfachini]

Glassdoor

[@W8ASA]

She certainly is not good at explaining things.

[@buckybarnes3803]

Why do you need to research anything, she's making far less than the employees she needs to be at $250 as the CEO, otherwise go back to teaching

[@BlackExcellenceProductions]

That’s an interesting angle too. Why do more work with more responsibility just to make the same as the educators?

[@TheDjcarter1966]

​​@@BlackExcellenceProductionsI'm guessing she isn't doing more work ... she's got a cush job not doing much I would probably stay quiet...$125k goes a long way in Wyoming

[@ppybmjc]

Sounds like they're support teachers for kids with a "super specific" disability. There's a good chance that their skills are more niche and their jobs more demanding than hers.