More stories about pay caught my eye this week, not just how much people get paid, but what they do to get even more money, and how they spend it even if they are on welfare.
In the pay category, salaries for recent law school grads has remained flat with the top pay being a measly $160,000 US a year right out of school. The further bad news is that only 39% of the largest firms say they pay that amount, compared to nearly two-thirds in 2009.
In other bad news for employees, or at least older employees, Hyundai Motor Co. plans to start paying workers according to (gasp!) merit rather than seniority. Workers who have been with the company longest get paid nearly twice as much as younger co-workers who do the same job. With an aging population, the company, which is one of South Korea’s largest employers, says it is in danger of not being able to produce cars domestically.
In good news for at least one group of employees, an American company has announced to its employees that everyone will earn at least $70,000 US a year, regardless of their job. The current average salary at the 120-employee company is $48,000 US. The plan will take about three years to implement – a great way to retain employees.
But what may seem like a great salary to some, never seems to be enough to others. Take Rodrigo Rato for example. He is a former head of the International Monetary Fund (just before Dominique Strauss-Kahn took the reins) and one can assume that was a fairly high-paying job. Yet Rato has just been arrested on allegations of money laundering and tax evasion, which at this point are only allegations. But it does raise the question when enough is enough.
The right connections and a strong sales pitch helped a 35-year old Yale graduate raise money for ventures that so far have flopped. The interesting thing about the case though is that the investors were all savvy. But they met the grad at alumni events, the Sundance film festival or were introduced via the close-knit angel investor community so they didn’t do any due diligence. The amount of the loss was small, the New York Times reports – only a few million dollars.
Perhaps a better way to invest is with the help of a robo-adviser. Assante Wealth Management said this week it was investing $30 million in Wealthsimple Inc., a robo-adviser that already has 1,000 clients. Robo-advisers are online portfolio managers that recommend investments – in Assante’s case, mutual funds -- by using an asset allocation tool based on age, financial goals and risk tolerance. The computerized system is meant to attract younger people who can’t afford, or don’t want to pay a lot, for a full services adviser.
And speaking of not being able to afford things, the state of Kansas is now banning the use of welfare to buy luxury items like concert tickets and lingerie. Must be a pretty good welfare system, if you can afford to go to concerts on state funds. Either that or a bad concert.
