Google underpaying employees by hundreds of millions of dollars
A portfolio manager at the Gabelli Funds did the following calculation:
-
5,000 Google employees
$4.5m pre-tax cash flow
52x cash flow stock market valuation
$230 million of market value per employee
Looking at it this way, Google is underpaying employees more than any other company in history. Bad Google! Time to call the union boys in.
h/t: WSJ
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January 2nd, 2006 at 8:55 am
remember their corporate motto. First do no evil.
January 2nd, 2006 at 4:04 pm
[…] profits on the backs of its labor force. Is it Wal-Mart? Coca-Cola? Pfizer? Nope; try Google.Tags: controversy! […]
January 9th, 2006 at 6:56 pm
If i’m not mistaken, I think you guys might be off by an order of magnitude. I just looked at Yahoo Finance, and they have the market cap at $137Bn. If you divide that by 5,000 employees, you end up with a market value per employee of $27m/employee, not ~$200m/employee. Feel free to double check me here, but I think there might be a decimal error in your initial calc, or their calc.