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Cameron promises powers to limit executives' pay
http://www.x404.co.uk/forum/viewtopic.php?f=19&t=15542		 Page 1 of 1
Author:  pcernie [ Sun Jan 08, 2012 8:04 pm ]
Post subject:  Cameron promises powers to limit executives' pay
http://www.bbc.co.uk/news/uk-16458570

Quote:
Some bosses did not justify their pay and were "taking money from the owners of the companies and from pension-holders and the employees. This is what we will be addressing."


Yes, well, you'd know all about it! :x
Author:  jonbwfc [ Sun Jan 08, 2012 8:26 pm ]
Post subject:  Re: Cameron promises powers to limit executives' pay
pcernie wrote:
Quote:
Some bosses did not justify their pay and were "taking money from the owners of the companies and from pension-holders and the employees."

"And damnit, that OUR job", he didn't add.

I'm not sure the reforms he's talked about implementing will make a jot of difference. Giving shareholders veto over executive remuneration is in theory a good idea but the fact is most companies' shares are held by institutional investors. The people who will control those votes are therefore... executives. Can anyone else see the obvious flaw in this plan?

There was a government report into executive pay a while ago that proposed some much more useful measures (remuneration not above a (still quite large) multiple of average pay etc). I just can't remember the name of it off the top of my head. Cameron & Co are adopting very few of the recommendations of that report. It could be... interesting come next PMQs. Which, IIRC, is sadly not for quite some time.

Jon
Author:  ProfessorF [ Sun Jan 08, 2012 8:54 pm ]
Post subject:  Re: Cameron promises powers to limit executives' pay
Why not just use the Scandinavian (I think?) model of having the top rate of pay being 10 times the lowest employee rate of pay?
Seems much fairer all round.
Author:  belchingmatt [ Sun Jan 08, 2012 10:05 pm ]
Post subject:  Re: Cameron promises powers to limit executives' pay
I saw something in the last week showing Japanese and Scandinavian countries generally had an executive pay difference of 11-15x that of the average worker. For the UK it was far higher and in the States several hundred times more. Can't find it now but I'm sure it was on the BBC.
Author:  davrosG5 [ Mon Jan 09, 2012 5:02 pm ]
Post subject:  Re: Cameron promises powers to limit executives' pay
ProfessorF wrote:
Why not just use the Scandinavian (I think?) model of having the top rate of pay being 10 times the lowest employee rate of pay?
Seems much fairer all round.


IIRC that's also the system John Lewis uses.
Seems like an excellent plan to me - executives want a pay rise, fine bump up everyone else at the same time.

I would at least like to see employees on renumeration comitees and not just in a token way.
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