Pictorial Perspective on Personnel Costs

In the leaked KFUO financial document the Personnel Costs charged to the AM station are particularly glaring.

If we are to believe that these expenses are accurately recorded then we have to be willing to believe some odd financial facts. The charts below tell the story.

Chart 1

This chart graphically depicts the fact that the AM Station employed 31% of all KFUO employees while the FM Station employed 69%.

Chart 2

This chart demonstrates how if we were to believe the financial figures that we'd also have to believe that 31% of KFUO's employees accounted for 42% of all personnel expenses while 69% of KFUO's employees accounted for ONLY 58% of all personnel expenses.

Chart 3

This last chart is the real 'kicker'.

If we believe these figures are accurate then we have to be willing to believe that the average annual salary at KFUO AM was $97,391 per year (an amount that is higher than the highest paid employee at KFUO AM) while the average annual salary at the FM Station was ONLY $59,624.

Remember: KFUO AM is a ministry station and KFUO FM is a commercial station.

Somebody has some explaining to do.

Comments

[FreeSpeechLutheran]

Disappointed. I would like to hear an explanation.

[Greg Johnson]

I'd say it is time for David Strand to do the right thing and resign. And live off his wife's salary so he can speak out about the guy who hung him out to dry, Kieschnick.

[Sean]

I'm reposting a comment I made on the last thread, as it is relevant here also...

A minor comment on the calculation of employee salaries. The cost of employing someone for a company is higher than that employee's paycheck. There are other costs such as social security taxes, health insurance, other benefits. These costs add up.

I posted a comment on the "These figures don't add up" thread that showed the gross pay vs cost to employer of several relevant jobs in the St. Louis area. In each case, the gross pay was roughly 2/3 of the total cost.

So, it's easy to look at the personnel costs, divide by 8 and conclude that these 8 employees are bringing home $97,000 a year. But they are really only grossing about 2/3 of that. The average gross would be more like $65,000 per year.

BTW, I am not "on KFUO's side." I've never even listened to the station. I'm just trying to help ensure your argument is supported with accurate figures.

[Frank Gillespie]

Sean is right on what makes up the total cost of an employee. This will end up a non issue at the end of the day.

The other financial numbers however, need to be closely scrutinized.

[escher417]

Unfortunately, Sean's argument does not make the salary numbers look any better. Even taking his argument into account, the salaries on the AM side are extraordinarily high. But, hey, perhaps all 8 employees were driving expensive cars and living in extremely nice homes....not likely.