If you are employed by a commercial enterprise do you ever wonder how much your hard work has profited for the company?
Suppose over the years of your employment with the company you have been paid about $500,000 and directly due to your effectiveness the company profited about $1,200, 000 -how would you feel about that?
There is no reason to employ me unless my employment benefits the bottom line. It would be hard to quantify how much I contributed, but I can virtually guarantee is was more than I was paid. That's how it's supposed to work.
If I earned my employer $1 per day, and the other 1000 employees did the same------------ well, that's $365,000 per year we make for our employer. However, I think we earn our employer more than $1 per day! He already has a mansion and a yacht. He continues to buy out his competitors and this adds more security and opportunity for all of us.
I am still employed so I must be doing something right. That is I must be bringing in more than the capitalization rate.
Cap rate example, say my salary is $10. Target profit is 7%. Now divide the 10 by .07 which comes out to approximately $142 and change. So I have to be bringing in $142 dollars or more to stay wmployed
Have no idea of the exact figures. But they have kept me on for over 29 years and for the last 15 or so have been paying me I think quite handsomely so I guess they think I must be contributing something.