It is a nation-wide utility company, not transportation, but in a large
sense akin to it. It divides itself between the Atlantic and Pacific into
various subsidiary companies, each fairly autonomous. These companies,
working in cooperation, have evolved a salary plan that is attractive to
their personnel. The company heads each receive as an average from $35,000
to $40,000 a year. Immediately beneath them are their vice-presidents,
three or four at from $20,000 to $25,000; beneath these in turn a group of
ten to a dozen sub-executives at $15,000 to $18,000, and then a large
group (thirty-five or forty men) at from $10,000 to $12,500 annually. The
curve irons out to a comfortable rotundity. The salary appeal stands
strongly; the opportunity of getting into that third sizable executive
group of good wage standard is large enough to bring young men out of
college to these companies in a larger number than they can accept, which
gives them a most excellent opportunity to pick and choose.
A plan such as this would be easily applicable to almost any one of our
American railroads of to-day, which almost invariably are under-staffed
rather than over-staffed. And the first objection to it, the cost, is
discounted by the fact that even to a comparatively small line it would
not add more than 5 or 6 per cent, to the pay-roll--perhaps not more than
a fraction of 1 per cent, to the total operating cost. The utility company
which I have just quoted boasts that it could cut its entire pay-roll down
to a maximum of $5000 a year for all of its officers and still reduce its
total pay-roll cost less than a mere 1 per cent., which speaks volumes for
the even distribution of its official salaries.
Given a broad-minded fairly planned salary scheme such as this--and having
provided always that the scheme was well advertised--and the average
railroad ought to begin to pull itself through on this difficult question
of supplying a fresh quantity of proper officer personnel for itself. To
this might well be added, as has already been suggested, a systematic plan
for teaching the various phases of transport in many of our schools and
colleges and then closely scanning the output of these classes for future
executive material. That such a plan would work and would be worth far
more than its comparatively modest cost, is the opinion of far-seeing men
within the railroad industry as well as outside of it. That more attention
is needed to this vital phase of our transport problem is clearly
indicated by the action of the Pennsylvania railroad immediately after
coming out from government control, in appointing a high personnel officer
with a title and prestige none the less than vice-president.
Public-domain text, read in full here on John Shaqi.
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