As a thought exercise, what is that comp averaged by the number of Chipotle salads made? In 2010, they sold ~750k per day, or ~273.75M.

So that CEO bonus costs ~$0.13 per salad sold.

I'm not sure of the rest of the comp required for the C-Suite, but that seems like a lot. I doubt the CEO's value is irreplaceable.

[0] https://www.laweekly.com/fast-food-using-slow-food-talking-w...

>So that CEO bonus costs ~$0.13 per salad sold. [...] but that seems like a lot. I doubt the CEO's value is irreplaceable.

The flaw in this analysis is that you think chipotle only sells salads. They obviously don't. At least based off my experience most people order burritos/bowls, not salads.

Here's my analysis: per wikipedia, chipotle has revenue of $5.586 billion in 2019. If we divide CEO's salary by that, we arrive at 0.68 cents per dollar of revenue. According to wikipedia, chipotle doesn't franchise, so we can assume that's all food revenue. Assuming a salad that costs $10, that's 6.8 cents of CEO comp per salad sold.

To be fair, the source said 750k people fed daily, and I made a slip and wrote salads since that is what I usually get.

The calculation is then:

Compensation / (daily consumers * days) = average cost added per person fed (and, if once per day, per item sold).

This allows us to ignore the price per item or total revenue, which might be misleading.

How much is that per food item (the example you were responding to was $.05/item)?