TikTok business owner explains how she pays the same salary to all of her employees, including herself

A business owner is going viral after breaking down the ‘universal’ salary she pays her employees.

In early April, Madeline Pendleton (@madeline_pendleton) posted a TikTok that got a lot of viewers talking. In it, she explained how — and why — she pays the same salary to each of her employees, including herself.

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Pendleton is a 35-year-old influencer, podcaster, and owner of Tunnel Vision, a Los Angeles-based clothing store. The shop, as its clip explains, has 10 full-time employees who all earn $73,000 a year.

Pendleton begins his clip by pointing out that “any” company could follow his model “without having to spend more money”.

“It’s just a redistribution of income,” she said.

She goes on to show that in 2020, the average CEO of one of the 350 largest American companies earned $24.2 million, more than 351 times more than the average American worker. Pendleton’s suggestion is to completely eliminate this disparity by paying a “universal wage”.

“You just take everyone’s salary in the whole place and then average out the number of workers you have,” she says.

Pendleton’s business has total payroll costs of $730,000 a year, which it splits equally between itself and its nine other full-time staff. However, as she shows, she could earn more than six times as much.

As an experiment, Pendleton demonstrates what would happen if she paid her nine employees $16 an hour, which will soon be the minimum wage in Los Angeles. These employees would earn just over $33,000 a year, while she earned over $430,000.

This disparity, she points out, is only widening in large companies.

“It’s ridiculous,” she said. “That’s what these CEOs do, so they can make $24 million a year while you make about $30,000.”

The point goes beyond large corporations. In 2022, the median salary for a CEO at any US company was $790,418. This includes large companies and small companies like Pendleton’s.

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Many commentators praised Pendleton’s politics.

“That’s EXACTLY how we do it!” a user wrote.

“As a manager, I am for it. But I guarantee you my CEO is not,” added another.

“So much love for you!” another wrote.

Others questioned the limits of the policy. Some have wondered how evenly distributed income might work in other areas, where experience or education differs more dramatically.

“So in the hospital, the doctors should do the same as the janitor?” a user asked.

“Not everyone deserves the same salary. You get paid what you bring to the table,” another agreed.

Still, some were just happy to see a business owner being transparent about their finances.

In that sense, Pendleton’s video follows a larger trend on TikTok, where users are sharing their salaries and earnings in many areas. TikTokers recently revealed how much they earn working at Hooters, Waffle House, and even as NFL water boys.

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The post Business owner explains on TikTok how she pays all her employees the same salary appeared first on In The Know.

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