Received from Anonymous 1
Tue, 5 Apr 2016 at 8:52 a.m.
█ Message: This needs wide debate in Dunedin and NZ!
Slashing huge salaries ‘would not hurt economy’, says report as new analysis finds leading CEOs earn average of £4.6m a year.
### theguardian.com Sat, 5 Mar 2016 22.38 GMT
The Observer – Business
Pay for UK bosses is ‘absurdly high’, top headhunters admit
By Daniel Boffey – Observer policy editor
Britain’s chief executives are wildly overpaid, and there would be no negative impact on the economy if their salaries were slashed, a groundbreaking study of the country’s top headhunters reveals. The London School of Economics report is a damning indictment of the state of executive pay, and comes as an analysis of FTSE 100 company accounts shows that the average pay package of a top CEO is now £4.6m a year. Interviews with the top 10 international recruitment firms behind 70-90% of chief executive appointments in recent years found a consensus among so-called corporate kingmakers that levels of remuneration for the most senior executives are “absurdly high”.
Headhunters claimed that, for every appointment of a CEO, another 100 people could have filled the role just as ably, and that many chosen for top jobs were “mediocre”.
The market for executive jobs, however, has become so distorted that it would amount to career suicide for a chief executive to indicate that he or she would be willing to work for less. The study’s authors write: “If one were to offer to do the job for less, would that tip the decision in his or her favour? All the headhunters agreed that this would be a poor strategy. “Indeed, it might be that asking for a larger remuneration would have a positive effect in securing the appointment.”
● This article appeared in the Otago Daily Times on 28 March 2016.
Received from Anonymous 2
Tue, 5 Apr 2016 at 8:20 a.m.
█ Message: A friend in Australia sent me this in anticipation of an upcoming Aussie election. Interesting! Why are we so cynical about politicians?!
Posted by Elizabeth Kerr