A business owner has revealed she pays herself the exact same as her employees. Watch below:
Madeline Pendleton runs a vintage store in Los Angeles, US, and has taken a fairly unique approach tor remunerating her staff.
Rather than her taking all of the profit for herself and paying her staff low wages, she shares everything with them, taking home the exact same salary as her employees.
In a video posted on her TikTok account, Madeline explains how and why she does so.
"So I own a small business but we all earn the same take-home pay rate per day, which is $250 (£180).
"Full-time workers work four days per week, part-time workers work two days per week at my place.
"For full time workers, this amounts to an annual salary of $70,200 (£50,487) per year, which I know sounds very fancy but it only makes us lower middle class in Los Angeles, where we are. Still feels pretty rich to most of us, though, cause most of us are used to being poor.
"I have seven full-time employees and three part-time employees, and my total payroll expenses for everyone, including myself, are almost $600,000 per year (£596,700).
"Now, again remember, this is the total payroll expenses but I only earn that $70,200 like everybody else.
"Let's imagine I paid them just the minimum wage and I kept the rest. The minimum wage for my company in LA is 14.25 per hour because we have less than 25 employees, which at our spiffy four-day work week amounts to $23,712 (£17,102) for a full-time worker and a little under $12,000 (£8,600) for part-time."
She then reveals that her total payroll for staff would be just $177,840 (£128,267) while she would be left with a colossal $418,860 (£302,102).
Which, Madeline adds, is what 'most bosses are doing'.
In a separate video, Madeline also explained a bit more about how she supports her staff outside of work, too.
She said: "I have the same salary as everyone else. That is the only compensation from the job. When there are extra profits throughout the year, we do things for everybody.
"After we netted a huge profit from a recent sale, we bought everyone who needed one, a new car, paid off the remaining car loans for everybody else.
"We also put an option for people who didn't drive, telling them: 'Hey if this changes in the future, and you want to drive, we got you'.
"So ya, we do s**t like that and get as close to zero as possible. There's no profit leftover and we're distributing it all year long."
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