Comment on How Long It Takes the Largest Companies in America to Make One Employee's Average Annual Salary
WalrusDragonOnABike@kbin.social 1 year agoWould need to make sure to exclude costs like executive "compensation", stock buy backs, or any other methods used to artificially decrease profits to avoid taxes.
singron@lemmy.world 1 year ago
Stock buybacks don’t reduce profit for the company. They are not accounted as an expense that offsets income. Investors pay capital gains tax instead of income tax that they would pay on an equivalent dividend, which is probably what you are thinking of.
Net revenue, gross profit, operating income, EBITDA, and (net) profit are some well understood measures that take various things into account. E.g. net revenue subtracts the cost of inventory, but it doesn’t subtract wages, so it’s probably a good starting point for a discussion on redistributing earnings among workers.