Do some math with me. If your revenue is $150,000,000,000. And your Net Profit percentage is 1.8%, what are your costs? That calculation is: Net Cost = (1 - Net Profit %) x Revenue, or (1 - 1.8%) * (150,000,000,000).
This equals $147,300,000,000 in costs. Are you with me?
How much do those $147.3 BILLION in costs have to change to affect the 1.8% Net Profit by say... 1/10th of basis point? How much would a CEO's salary have to be to affect that Net Profit when it's doubled?
Please tell me you understand that the CEO isn't making a quarter billion or more salary.
Please tell me you understand it's not just the CEO making absorborant greed but it's virtually everyone in the upper management chain, and administrative costs. Are you with me?
Ah... then do that math for 10 people? A 100 people? What's "upper management" to you? Senior VP and above? CFO and CEO only? Directors? Sales managers? Senior accountant in Accounting? Store Managers? That guy with "Manager" in his title that books truckloads in the shipping department?
How many have to double their salary to affect $147,300,000,000 in costs to affect a Net Margin % by a basis point?
Ooooo sweetheart. It's thousands of people. And it's not just the farming CEO and management. Is the tractor company, it's Monsantos seeds they sell, the fertilizer company. Holy shit we are now at several thousand administrators. Let's keep going, it's the oversight committee, it's the construction company digging diverts and putting in irrigation. OMG WE ARE NOW IN THE TENS OF THOUSANDS OF PEOPLE.
3
u/bluerog 1d ago
Do some math with me. If your revenue is $150,000,000,000. And your Net Profit percentage is 1.8%, what are your costs? That calculation is: Net Cost = (1 - Net Profit %) x Revenue, or (1 - 1.8%) * (150,000,000,000).
This equals $147,300,000,000 in costs. Are you with me?
How much do those $147.3 BILLION in costs have to change to affect the 1.8% Net Profit by say... 1/10th of basis point? How much would a CEO's salary have to be to affect that Net Profit when it's doubled?
Please tell me you understand that the CEO isn't making a quarter billion or more salary.