You have just been hired CEO of an established company. The company has been showing meager profits for the past 10 years ranging from -5% thru 5%. This year you are anticipating a 20% profit which equates to $100,000,000 due to an improvement in the economy.
Your company has 8,250 employees. The top 20% of your employees are very well paid. The bottom 80% are all making $15,080 per year and have been for the last 5 years. This year is different. The economy is better and these employees may leave for better opportunities. You also may have trouble hiring new employees if you set the wage too low. Your company by-laws states that you can only change wages once a year which is today.
How do you balance making the stockholders happy with generous profits and keeping the employees happy with generous wages?
Please wait for the poll.