Dunkin Donut CEO Who Makes $4,887 an Hour Outraged at $15 Minimum Wage

[whatthehey]

6. While he is doubtless overpaid and minimum wage earners the reverse, CEO pay comparisons are always

absurd.

DD has 270000 employees. I have no inside stats but it's typical in such companies for about 75% or more to be frontline staff.

That means about 200,000 donut (actually mostly drinks) handlers.

Let's be insanely optimistic and say they currently average $10 an hour. It's likely worse, but the math's easy.

That means a $5 increase per hour costs $1M to DD (mostly its franchisees).

Meaning that it would cover that CEO's exhorbitant salary in additional costs in less than a single day. In other words DD could hire 365+ Travises for the cost of that wage increase.

Is it a good idea to do so? (the increase, not 365 CEOs!) Probably. Those 200,000 are far far higher on the marginal propensity to consume scale than he is and that additional money would drive far more consumer spending thanks to the multiplier effect, including doubtless some at DD. But his pay is an insignificant fraction of what it would cost DD to do that.