News consumers love hit pieces and yesterday CNN published one about Walmart's CEO, Doug McMillon.
CNN wants you to believe, without coming right out and saying it, that the CEO of Walmart earns too much money. The article they published points out how Walmart's CEO earns $22.8 million a year, which is 1,188 times more than the average salary of most Walmart workers. By comparison, Walmart's average employee brings home about $19,177 a year.
Many of you may have read that and thought, "Wow, I'm very offended by this news."
Don't be. The CEO of Walmart has earned every dime he makes, and I can prove it.
To prove my point, let's answer a hypothetical question: do you think someone deserves $10 a year if they can provide someone else with a full time job during that same time period? To put that in different terms, would you pay someone $10 a year if they could figure out how to get someone else a full time job?
Chances are you'd probably be completely fine with someone earning $10 a year for accomplishing the task of providing someone else with a full time job for the entire fiscal year, right?
Well, Walmart is a company that has 2.3 million employees. That's 2.3 million families who depend on the leadership and business strategy of the company's CEO to make sure they all have an income. This is not an easy task. The economy is volatile and unpredictable. It takes a lot of knowledge and effort to make sure this company operates from day-to-day without going bankrupt.
In fact, Walmart is the nation's largest private sector employer - they supply more people with jobs than any other private company in America.
If you consider that 2.3 million people count on Walmart CEO Doug McMillon to make sure their jobs exist, what should he receive in annual pay for this grueling task?
The answer is less than $10. The CEO of Walmart gets just a little less than $10 a year for every person he provides a job for - which is 2.3 million people. Also, the CEO of Walmart is earning most of this money in stock value. His actual salary is $1.3 million - the rest of his income comes from investing in his own company.
Are you still offended by his salary? If you answered yes, you might be a socialist.
But since we're talking about income, let's compare Walmart to CNN, the news outlet who published the hit piece on Walmart's CEO.
The CEO of CNN is Jeff Zucker. Depending on ratings and revenue, Jeff's contract states he will earn somewhere between $8 million and $11 million a year. Since that's a wide range, let's just say he earns about $9.5 million. And there are currently about 4000 CNN employees worldwide. So CNN's CEO actually earns $2375 a year for each of his employees. But Walmart's CEO only gets $10 for each employee.
Suddenly the CEO of Walmart doesn't seem so bad, does he? Maybe CNN should get their own affairs in order before they start throwing stones at the largest private sector employer in the United States.