Lee Valley: How one company levels the pay slope of executives and workers

[Marko Milisavljevic]

A recent Globe and Mail article that, while not about woodworking, will be of interest to LV groupies here:

How one company levels the pay slope of executives and workers (http://www.theglobeandmail.com/news/national/time-to-lead/how-one-company-levels-the-pay-slope-of-executives-and-workers/article15472738/)

[Ralph Boumenot]

Interesting article. I have often wondered why fired CEO's are given millions of dollars for performance that is dirt poor?

[Frank Drew]

Marko,

Thanks for the link to the article; I'd be much more inclined to buy from a company with an enlightened employee policy, like Lee Valley, than one that treated its people like disposable parts.

[Daniel Rode]

I don't think this has anything to do with hand tools or even woodworking in general. Despite discussing Lee Valley, the article is about CEO and worker pay and IMO has no place here.

[Sean Hughto]

Some people like to "buy American." Some people like to "buy union." Some people like to buy from companies that care about the environment, or charities. This is no different, and is valuable information about the corporate citizenship of the woodworking companies to whom we want to send our money when we have a choice. Conversely, if you knew a company used slave or child labor, would you be indiffernt to that when choosing your next tool, etc. In short, this sort of information is completely appropriate and germane to this forum.

[David Peterson]

+1, Sean. This is a testament to a company whose products we as woodworkers respect and another good reason to give them our support and our business. This isn't an opening for a discussion on world labor practices. Just as I favor other companies we rely on whose businesses follow a similar model, I'm very glad to have the info.

[Peter Pedisich]

Well said, Sean!

[Hilton Ralphs]

I'm a self confessed Lee Valley groupie and I think this policy of theirs is simply wonderful and the knowledge of this should only enhance their reputation.

Something else to consider. Those who abuse the 'return for free' policy of LV to test out tools now know that any loss to LV directly affects every staff member equally, not just the shareholders.

Food for thought.

[Keith Outten]

When I read this post originally I felt that it was an economic topic not political. There is no government mandate involved, it concerns a policy matter that some companies have decided to implement.

I will move this thread to the Off Topic Forum though.
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[David Weaver]

It's something that people could make contentious, but we have a habit on this board of describing anything that could be made contentious as political. In this case, it's literally just LV doing something nice for their employees, and given that they are a significant supporter of this board, and not telling anyone else what to do, it seems entirely positive to me and I'm glad to see it.

[Bobby O'Neal]

Great story. I think the neat thing is that this appears to be a good mix of great leadership and business practice and simple kindness and generosity.

[Rick Potter]

I'm with Bobby. Pardon me while I hunt for my Lee Valley catalog.

Rick Potter

[Raymond Fries]

Awesome article. Companies like Lee Valley are the ones I would rather send my money to. I retired from a Swiss based food giant that does not maintain the same principles and honestly I try to avoid purchasing their products because of their business practices. I wish that company would make some changes to align with the principles of Lee Valley so the people there would be better off.

[Brian Kent]

On the original post - that is terrific and I want to support such a quality company for one more reason, in addition to quality of tools, outstanding customer service, and April 1 specials.

[Shawn Russell]

Interesting and informative article. Thanks for posting!

[Chris Vandiver]

One more informed reason to feel good about a purchase from Lee Valley/Veritas.

[Art Mann]

That is interesting information and new to me. Lee Valley's pay policy is is their business and not mine. What I care about is good products and good service. That is why I buy from them. On the other hand, I can't help but believe that their pay policy does contribute to good customer service and perhaps even good products. Conclusion: ethical business practices lead to good business and a loyal customer base whether the customer realizes it or not.

[Mitch Barker]

If I recall, Ben and Jerry's ice cream also limited the pay ratio to 10:1 until they were bought out by one of the giant food corporations.I wonder what a Veritas ice cream scoop would look like?

[Keith Outten]

I made a statement in another thread that I had just recently made my first purchase from Lee Valley. I visited their web site and was surprised to see how wide a variety of products they provide. I found several items that I had been looking for for a long time and made a purchase, when they arrived I was very impressed with the quality. Now I am spending way to much time on their web site and cruising the catalogs they are sending in the mail but I'm pleased to find another quality vendor that I can patronize, the list is not very long these days.

[Frederick Skelly]

Good article. Thanks for posting! This demonstrates once again that paying your people a fair wage is good for business over the long haul.

Mr Lee, once again, my hat's off to you and your father.

Fred

[Keith Outten]

McDonald's And Starbucks' CEOs Make More Than $9,200 An Hour
Business Insider By Hayley Peterson
December 10, 2013 6:01 AM

Arnd Wiegmann, the chief executives of McDonald's and Starbucks earn more than $9,200 an hour, which is at least 1,000 times the hourly wages of their sales associates, according to a new report by the personal finance website NerdWallet.

The report highlights fast food and retail companies with some of the biggest gaps between CEO pay and hourly wages paid to associates.

McDonald's, Starbucks and Dollar General top the list, followed by Gap, TJ Maxx, Target, Wal-Mart, CVS Caremark, Best Buy and AT&T Wireless.

NerdWallet study - CEO pay
Out of those 10 companies, median CEO pay on an hourly basis was calculated as $7,334, compared to $8.73 for sales associates. NerdWallet reviewed 100 companies for the report and selected the 10 that had the highest annual CEO pay to compare the disparities.

CEO pay was calculated by dividing each chief executive's total compensation (as reported in the company's annual proxy statement) by 60 hours a week times 50 weeks per year. Sales associates' wage information was obtained from Glassdoor.com.

The NerdWallet study comes as employees of fast food and retail chains have been staging a series of demonstrations and strikes demanding better pay.
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[Pat Barry]

Its still all about kings and paupers isn't it?

[Keith Outten]

I guess so.
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