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RJF

RJF

Well-Known Member
PepsiCo(Frito Lay)

This change was made here in Utah 2 years ago(piloted in Phoenix area the year prior), as CEO Indra Nooyi took an 18% pay raise for a compensation package $26M/yr the majority of route sales reps took 10-20k pay cut. But hey, who cares about the frontline that is actually the backbone of the business.

Being a vendor is a ****ing joke anymore. The compensation used to be worth the ****ty schedule(working every holiday, starting at 2:00-3:00 am typically, 12-14 hour days, etc..) but I'm warming up more and more to union representation after souring when I was at Hostess(company and union were equally at fault for that debacle).


https://nyp.st/2heOReN
 
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RJF said:
This change was made here in Utah 2 years ago(piloted in Phoenix area the year prior), as CEO Indra Nooyi took an 18% pay raise for a compensation package $26M/yr the majority of route sales reps took 10-20k pay cut. But hey, who cares about the frontline that is actually the backbone of the business.

Being a vendor is a ****ing joke anymore. The compensation used to be worth the ****ty schedule(working every holiday, starting at 2:00-3:00 am typically, 12-14 hour days, etc..) but I'm warming up more and more to union representation after souring when I was at Hostess(company and union were equally at fault for that debacle).


https://nyp.st/2heOReN
Click to expand...

Ugh. That's awful, RJF. Sorry. This is my issue with capitalism. It's UnAmerican but IDGAF. There needs to be some sort of cap on what executives can make. It needs to be equation-based based off of employee numbers and revenue or profits or something but this is just ludicrous. You know if that CEO started to see profits slip, it wouldn't be her that was let go. She'd fire the little people.
 
sorry to hear RJF.

That's why I'm all for shareholder driven initiatives that limit executive compensation to some reasonable ratio of regular pay.

At any rate, not sure why this is in GENERAL SPORTS.
Do you want to keep it here or move it to GENERAL?


this seems to be a reasonably balanced article on the topic:
https://www.epi.org/publication/top-ceos-make-300-times-more-than-workers-pay-growth-surpasses-market-gains-and-the-rest-of-the-0-1-percent/

The CEO-to-worker compensation ratio, 20-to-1 in 1965, peaked at 376-to-1 in 2000 and was 303-to-1 in 2014, far higher than in the 1960s, 1970s, 1980s, or 1990s.
Click to expand...

Critics of examining these trends suggest looking at the pay of the average CEO, not CEOs of the largest firms. However, the average firm is very small, employing just 20 workers, and does not represent a useful comparison to the pay of a typical worker who works in a firm with roughly 1,000 workers. Half (52 percent) of employment and 58 percent of total payroll are in firms with more than 500 or more employees. Firms with at least 10,000 workers provide 27.9 percent of all employment and 31.4 percent of all payroll.
Click to expand...
 
moevillini said:
sorry to hear RJF.

That's why I'm all for shareholder driven initiatives that limit executive compensation to some reasonable ratio of regular pay.

At any rate, not sure why this is in GENERAL SPORTS.
Do you want to keep it here or move it to GENERAL?


this seems to be a reasonably balanced article on the topic:
https://www.epi.org/publication/top-ceos-make-300-times-more-than-workers-pay-growth-surpasses-market-gains-and-the-rest-of-the-0-1-percent/
Click to expand...

I would appreciate the relocation. :) I pm'd OL requesting it be moved.
 
RJF said:
Not for Frito Lay is what I meant to say. I'd have to organize it.
Click to expand...
I see. That would be rough on you. You would get a target on your back from management and many co-workers would be against you.
 
RJF said:
This change was made here in Utah 2 years ago(piloted in Phoenix area the year prior), as CEO Indra Nooyi took an 18% pay raise for a compensation package $26M/yr the majority of route sales reps took 10-20k pay cut. But hey, who cares about the frontline that is actually the backbone of the business.

Being a vendor is a ****ing joke anymore. The compensation used to be worth the ****ty schedule(working every holiday, starting at 2:00-3:00 am typically, 12-14 hour days, etc..) but I'm warming up more and more to union representation after souring when I was at Hostess(company and union were equally at fault for that debacle).


https://nyp.st/2heOReN
Click to expand...

I have a friend that works for Frito Lay in Utah. He talked to be about this a while ago. He told me what his base is under their system. He has also had a reduction, but not even close to $10k to $20k (he said about $5k, but it could vary as the targets change every month or something, it was a while ago he told me about this...)His salary was actually reasonable, considering you don't need a formal education to work there. He worked for them FT while going to college part-time, and now works mostly evenings and weekends merchandising after graduating and working a FT job in IT. It is still lucrative enough for him to stay there.

I understand being upset as an employee that a CEO is getting paid so much. Shareholders care about a company growing in value, and that is what the CEO is doing.

I guess the question is, are there any other jobs vendor type jobs that pay better in Utah? If so, switch jobs. If not, it sounds like Frito-Lay was adjusting to the market...
 
JAZZGASM said:
I have a friend that works for Frito Lay in Utah. He talked to be about this a while ago. He told me what his base is under their system. He has also had a reduction, but not even close to $10k to $20k (he said about $5k, but it could vary as the targets change every month or something, it was a while ago he told me about this...)His salary was actually reasonable, considering you don't need a formal education to work there. He worked for them FT while going to college part-time, and now works mostly evenings and weekends merchandising after graduating and working a FT job in IT. It is still lucrative enough for him to stay there.

I understand being upset as an employee that a CEO is getting paid so much. Shareholders care about a company growing in value, and that is what the CEO is doing.

I guess the question is, are there any other jobs vendor type jobs that pay better in Utah? If so, switch jobs. If not, it sounds like Frito-Lay was adjusting to the market...
Click to expand...

Frito Lay transformed the industry. After their conversion from commission to their current pay structure, Mondelez(Nabisco) and Kelloggs(Keebler) followed suit. As of July, Kelloggs is abandoning direct store delivery. Vendor jobs were once well compensated, but now unless you're and IO or majority unionized, it's far less desirable.

When this change happened, PepsiCo stock went from high 80's per share to ~109 per share currently. Profits are up, executive compensation is up, yet the drivers(literally and figuratively) of the business are continually getting squeezed.
 
RJF said:
Frito Lay transformed the industry. After their conversion from commission to their current pay structure, Mondelez(Nabisco) and Kelloggs(Keebler) followed suit. As of July, Kelloggs is abandoning direct store delivery. Vendor jobs were once well compensated, but now unless you're and IO or majority unionized, it's far less desirable.

When this change happened, PepsiCo stock went from high 80's per share to ~109 per share currently. Profits are up, executive compensation is up, yet the drivers(literally and figuratively) of the business are continually getting squeezed.
Click to expand...


I honestly can't blame Kellogg. As a business, if I can get my products in store more efficiently using warehouses instead of direct store delivery, that is what I'll do. Imagine the savings not having to pay a driver $16/hr or more to stock the shelves when a store employee can do it for $10/hr. Bottom line is more profits for Keebler, and lover overall costs to the stores. To me, that is just good business. We are going to see this more and more as companies strive to become more efficient. Warehouse jobs will go to robots, etc. to compete.
 
JAZZGASM said:
I honestly can't blame Kellogg. As a business, if I can get my products in store more efficiently using warehouses instead of direct store delivery, that is what I'll do. Imagine the savings not having to pay a driver $16/hr or more to stock the shelves when a store employee can do it for $10/hr. Bottom line is more profits for Keebler, and lover overall costs to the stores. To me, that is just good business. We are going to see this more and more as companies strive to become more efficient. Warehouse jobs will go to robots, etc. to compete.
Click to expand...

I understand the cost savings for Kellogg's but they benefit more than the retailer. Quality of merchandising suffers greatly moving away from DSD. Those cost savings are not that great when that overhead moves to the stores botttom line. Those full-service credits are now a loss to the store where before they were a loss to the vendor. One store manager in this market told me he would have to hire 2 new employees to maintain Kellogg's products in his store. Those features will go to dsd now because it's free labor.
 
JAZZGASM said:
I honestly can't blame Kellogg. As a business, if I can get my products in store more efficiently using warehouses instead of direct store delivery, that is what I'll do. Imagine the savings not having to pay a driver $16/hr or more to stock the shelves when a store employee can do it for $10/hr. Bottom line is more profits for Keebler, and lover overall costs to the stores. To me, that is just good business. We are going to see this more and more as companies strive to become more efficient. Warehouse jobs will go to robots, etc. to compete.
Click to expand...

Nook, what ya think all this google drive stuff is designed for? They ain't gone be no truck drivers no delivery drivers no post man no nothin anymore. Google gonna be delivering everything "safer, faster" in 5 years.

Your kids want a job you had better learn ta work on the robots that work on the robots. Ask [MENTION=40]Siro[/MENTION] he is smart he will tell you.
 
RJF said:
I understand the cost savings for Kellogg's but they benefit more than the retailer. Quality of merchandising suffers greatly moving away from DSD. Those cost savings are not that great when that overhead moves to the stores botttom line. Those full-service credits are now a loss to the store where before they were a loss to the vendor. One store manager in this market told me he would have to hire 2 new employees to maintain Kellogg's products in his store. Those features will go to dsd now because it's free labor.
Click to expand...

This annoys me about modern capitalism. 2 examples. Chicken in a Biscuit crackers used to be great before Walmart came along and started getting specialty products from each company at a lower price, which came partly from decreased quality. Now they are dry and nasty, and I no longer buy them.

Carrabba's used to make some pretty tasty food. Then they got cheap. They used to pound their chicken breasts and stuff them with fontina and the sauce. Now they toss the cheese on top of a much drier breast. It sucks in comparison and is nothing worth going out for.

Why don't companies raise prices and stick by quality of product that people are willing to pay for?
 
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