Today, the Disney board agreed to give CEO Bob Iger a 12% raise; effectively increasing his salary to $33.1 million.
In other news, SeaWorld gave all of its employees a 3% raise last week – regardless of position within the company.
I find this interesting because it seems that Disney is sending out the message that “we couldn’t have done it without Bob“; while SeaWorld is congratulating the entire team on a job well done. Even more interesting is the fact that Disney’s stock dropped 12.5% during their fiscal year while SeaWorld boasted record profits. It should also be noted that Disney dropped from number 199 to 266 on Fortune 500’s Global 500 ranking this last year.
Granted, Disney is a much larger employer (about 149,000 employees worldwide versus SeaWorld’s 26,000) but I’d still be interested to know how the math works out. Bob’s raise means $3.5 million more per year. What does 3% spread across 26,000 employees of wide-ranging hourly and salaried positions equal?
Let’s just assume that 50% makes minimum wage (currently $7.25/hour), another 32% makes $15/hour, another 15% are salaried at $60,000/year, and the final 3% is salaried at $150,000/year.
The first group gets a 22 cent/hour raise. The second group gets a 45 cent/hour raise. The third group gets $1,800 more per year. The last group gets $4,500 more per year.
Let’s also assume that the first two groups work part-time – just 20 hours per week (1,040 hours per year) – while the last two groups are full-time employees.
22 cents per hour, for 1,040 hours, equals $228.80 extra per year; multiplied by 13,000 employees amounts to a whopping $2.97 million.
45 cents per hour, for 1,040 hours, equals $468 extra per year; multiplied by another 8,320 employees amounts to just about 3.9 million.
$1,800 extra each year, spread across 3,900 employees equals $7 million.
Lastly, $4,500 extra each year for the upper 3% (780 employees) totals out at $3.5 million.
Once we add all of my fuzzy math together we find that SeaWorld’s 3% pay increase could be totaling upwards of $17.37 million extra each year – about 1.5% of SeaWorld’s 2006 revenue (which was about $1.178 billion).
Somewhat interesting? I think so.