Top bosses on 100 times average earnings

And about half the Premiership pay packet, I wonder which adds the most value?

Sorry, What exactly is a few 100 Chief execs being paid a high salary a problem?

tim

Where in the article does it say there is a problem, tim?

It doesn't explicitly. However you do have:

"bonanza" "spectacular" "over 100 times what most of their employees earn" and lets not forget "making ends meet on £11m"

Lets face it, to the general populous in the UK successful people are to be hated rather than seen as role models.

(cue Fat Cats, City bonuses, NG socialist etc etc.)

Raj

What's the evidence for that statement? I rather thought we had a cult of celebrity right now, and that rich and successful people were celebrated by all.

You're absolutely right, and rich and successful celebrities (dubious term these days) are celebrated right now. However, my comment was (rather unclearly!) supposed to be directed at attitudes towards successful investors, CEOs, financiers etc.

There has been some improvement in the last 2 years with shows like "the apprentice", "tycoon", and all the property programmes. However, unless the method of wealth achieved isn't tangible to the general populous (eg: why does a CEO get paid so much? Why do tube bosses get paid Xmillion compared to a station attendant?), that person/segment of people become overpaid fat-cat(s), rather than a role model of any sort.

You can google something like "fat cat city finance" and see the tone of what articles you get.

Thanks

I see what you mean.

Maybe it's a popular subject because there is so much secrecy in private industry about what people are paid and why. So people can project all kinds of fantasies into the void of ignorance.

I'm sure that if the truth were known about the long hours our top executives work, and the performance improvements they all bring, there would be a lot more understanding about why they need so much money in order to motivate them.

Not if they play football...

No there isn't, the article references quoted FTSE companies, their books, filings and annual reports are open for all to see.

As for the why, why are some footballers paid 100k week, supply and demand?

If you want to motivate rich people, pay 'em more. If you want to motivate poor people, pay 'em less.

;)

All the employees are words and all the managers are pictures - "a picture's worth a thousand words".

Would you believe it - there is actual research evidence for the notion that to motivate the most senior executives you do indeed need to pay them more. For this group money is a potent motivator. Whereas, for most other people, factors like the inherent interest of the job and freedom to make one's own decisions are more important motivators than money.

However looking at the performance of the organisation as a whole, it's important to ensure that the pay system is felt to be fair.

That's probably because execs already have the other things that you mention

tim

I'm sure that's right, tim. And (although I have no personal experience of extreme wealth) I expect there is also a sense in which they measure their relative status compared to other senior execs - and hence seek more and more in the way of financial reward - not because they are greedy, although it may seem so, but because the reward of the senior exec is also a measure of the status of their company, whom they represent.

Like football managers, they are very attached (and also dependant) on the reputation of their organisation.

This probably explains why the attempt to find a simplistic correlation between pay and performance in the case of senior execs is doomed to fail. Because although football managers stand or fall on the results of their team on the field, the careers of senior execs - and their remuneration - is as much a function of intention as of past results. Shareholders pay senior execs big money in order to make a statement of future intention with regard to the company, irrespective of what their senior execs actually achieve. After all, if the senior exec fails to match up to the intention, it's easy enough to get rid of them, and sweeten the departure with a golden handshake and pension plan.

The trouble is, that politically this is hard to reconcile with advice to those who work in the essential services of our society - and on whom the rich also depend in case of emergency - that they should put up with little, and restrict their demands for increases in their pay.

Whoever can square this particular circle has got it made.

I would say the 'problem' is universal, there are now some extremely well paid people working in the upper echelons of government and the public services with virtually no accountability nor independent yardstick in which to measure performance, relative or otherwise.

On the other hand, the way a private company wishes to distribute its surpluses is a matter for the shareholders and the board, it's "their" money.

Agreed - except for one thing.

Usually, 'their money' is the result of providing goods and services to the rest of us.

Hence the political problem.

It's a free market, nobody forces you to deal with any particular company, if you don't like them you can go elsewhere, take NR for example!

Of course this model falls apart when it comes to the mess that is PFI and regulated monopolies, that's a case of the worst of both worlds.

Have you tried to buy a computer that doesn't have MS Windows installed?

Because of their monopolistic practices you might have to go a long way to 'go elsewhere'.

Consumer choice is everywhere denied by such practices.

As you rightly say.

So it isn't such a free market as it ought to be.

You really are a sad individual, mate.

You pollute newsgroups with your than copy/paste articles from the Independent and the Guardian that pander to your prejudices?

Have you nothing better to do?

At a guess, your are probably both unemployed and unemployable - despite having been given, no doubt, an expensive education paid for by taxpayers like me.

Anyone who posts over 600 crap posts per month like you have done, needs serious help.

The therapy that I would recommend is get a job.

That way you will find out what YOU are worth in the open market.

The so-called fat cats exist in the market and the market pays what it considers their worth.

OK, so you resent this. Tough.

Wake up and smell the coffee!