Business in brief: Wage increase OK, survey says
A rise in the U.S. minimum wage would have little effect on small-business labor costs, according to a survey of small-business owners released Tuesday by Discover Financial Services.
According to Discover, 70 percent of the 1,000 small-business owners it surveyed said an increase in the federal minimum wage to $7.25 an hour would have no effect on labor costs. The minimum wage is currently $5.15 an hour.
“This most likely reflects that many small-business owners pay more than the minimum wage to their employees,” said Sastry Rachakonda, director of Discover Business Card, in a release.
The survey includes companies with five or fewer employees.
New York
Merrill Lynch ups broker rewards
Merrill Lynch & Co. has sweetened the bonus program for its 15,700 financial advisers, allowing brokers to receive payouts equal to up to 30 percent of the revenue they bring in, according to sources at the company.
Wall Street firms are scrambling to replace their traditional transaction-based commission model with the steadier revenue of fee-based businesses, and their bonus programs generally reflect that priority. Merrill’s new 2007 Focus on Growth bonus program, however, is meant to reward brokers who bring lots of revenue into the firm whatever the source, as long as they continue to grow their fee-based business, according to sources who spoke on condition of anonymity.
Andy Tasnady, a compensation consultant dealing with financial services firms, said Merrill’s move to add a production-based bonus plan will help brokers who have strong commission-based businesses.
Cleveland
Labor deal lifts Goodyear stock
Goodyear Tire & Rubber Co. shares hit a 52-week high on Tuesday following last week’s announcement that it reached a tentative agreement with United Steelworkers, a deal that may end a three-month strike.
Goodyear shares rose 40 cents, or 2 percent, to close at $20.12 on the New York Stock Exchange. Goodyear shares had traded within a 52-week range of $9.75 to $19.75.
The proposed three-year labor contract was announced Friday after the market closed.