re: California Pizza Huts lay off all delivery drivers ahead of minimum wage increase

quote:

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If you fired the CEO, took all his compensation and split it among all Pizza Hut employees, they might get an extra 30-40 cents an hour, until they stopped operations shortly afterward.

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I don't subscribe to C on Z's economics or political take...but I'm not so sure about this statement. Also, do agree that CEO compensation is not all cash...assuming it was though...

The $16/hr rate for drivers is already baked in with the CEO's $16 million compensation. So funding the $4/hr increase is what is at question. 1,200 drivers, 2080 hrs per year would yield ~$9,984,000 that would be needed to cover the increase in minimum wage for all the drivers.

FYI, I don't support the minimum wage increase and think it will hurt all these industries. With that said, N-IN-Out near me is and has been starting worker at $20.50 - $21.00/hr for over a year and still offer better pricing for a meal than McDonalds or Burger King and of course with constant long lines. Not sure how they are able to do that...