Michael Servus Dei Defensor Fideique Populi | Thursday, August 27, 2015 - 07:32 pm  The default salary is 300 which I think is too high. I once had the corp salary at about 200 and gradually raised it to 300. The government salary was raised correspondingly. Is it wise to lower the corp salary from 300? This may help reduce corporate cost but I'm afraid it'll lower the country welfare index - my world ranking rise was very much due to the pay increase reforms I implemented some weeks ago. I hope by reducing corporate cost this gives me the room to lower corp tax rate from 30% something, which may then help attract CEOs. |
ToeCutter | Thursday, August 27, 2015 - 09:45 pm  I think that is a matter of personal strategy really, there's no one way of doing stuff. Yes, your corp welfare (and country) will decline with lower salaries meaning less production, and, in my opinion, lower profits, despite the savings in salaries, including being able to lower your state salaries. Bear in mind though that if your running a tight high employment index you are going to want to keep your state salaries up anyway to meet CEO averages too. The general preference does seem to be around the 300 mark but a lot of experimenting has been done. In the past I have seen salaries of 1200+ being successful but not so much low ones. Again, as a personal preference, lower the tax anyway, CEO investment will easily cover the tax losses if you would want a non state corp economy. It's a completely different strategy and I reckon you should go with one or the other, a mix is hard to make really successful. |