Monday, October 26, 2009

BMW to Cap Executive Pay - wundervoll!

Now let me get this straight. GM, Ford, and Chrysler have all lost market share in the US and complain that worker wages and benefits made them uncompetitive. Germans assembly line workers average $60,000 a year and BMW sales have not plummeted as US car makers have.

And now, BMW says they are capping executive pay by establishing the current ration of difference 25-1 as THE ratio. According to the Bureau of Labor Statistics, the average U.S. worker earned $29,544. The ratio of CEO pay to average pay is 364:1 and to minimum wage is 885:1.

So... Why is it that US car companies have trouble competing?
clipped from

BMW to link managers' compensation to factory-worker wages

BMW plans to develop a new pay structure that links the salaries of its top executives to the wages of regular workers, the Frankfurter Allgemeine Sonntagszeitung newspaper reported on Sunday. It would be the first German manufacturer to do so.

Currently, the average salary of a worker on BMW's assembly line is around 40,000 euros a year ($60,100) while an executive board member's salary is around one million euros. In a proposal being developed by BMW, this ratio, approximately 25 to one, will remain at that level.

BMW assembly line
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