Shareholders Always Win

Employees want:

Increased wages

Increased benefits

Every 3 months, publically traded companies distribute dividends to shareholders for the privilege of using their money to operate the company.  Therefore, Presidents, General Managers, CEOs, COOs, and others retain their positions as long as those dividends are being paid and in the amount the shareholders have anticipated. Earnings per share calculations to determine dividends is based upon number of shares outstanding and Net Income.

Any variation of this must be explained and accepted in order for the Upper Management team to retain their employment status and/or be paid bonuses.

What does this mean for:

• Employees
• Vendors
• Customers
• Community

For the employees, this means any increase in hourly wages or annual salaries DECREASES NET INCOME as does increases in benefits paid to employees like:

1. health insurance
2. retirement or 401Ks
3. vacation leave
4. sick leave
5. paid holidays
6. disability

For the vendors, any increase they have on what they sell to companys impacts the cost of goods manufactured and causes the company to increase prices to compensate for the vendor's increase...  otherwise, not to do this WOULD DECREASE NET INCOME.

For the customer, if a company increases their prices, they must decided to pay the increase or substitute another product for the one that has an increase price.  If a product is substituted, then this WOULD DECREASES NET INCOME.

For the community, companys pay taxes which enables the local government to provide services to its residents like fire, police protection, as well as garbage pickup, and allows the local govt to keep their tax base low for their residents.

Additionally, for every dollar in payroll, $8-$10 in economic impact is created which allows the community to grow ecnomically and attract other businesses.