Monday, 9 January 2012

Executive pay vote

Prime Minster Cameron is proving to be quite the little rebel. Today he is offering those insignificant peons known as shareholders a vote on how much they pay the people they employ to run the companies they own.

From here...
David Cameron has promised shareholders a binding vote on executive pay, in an effort to deal with excessive salaries.

The prime minister told the BBC there had been a "market failure", with some bosses getting huge rises despite firms not improving their performances.

He also pledged to tackle large payouts for executives dismissed because of poor performance.

But Labour accused ministers of failing to increase fairness and transparency from boardrooms and the City.

The City is not going to like this. The whole point of grafting your way up to CEO level in a big company is you can then quite legally help yourself to the contents of the company bank accounts - all justified by the "remuneration committee", which is a bunch of your friends you're paying to decide how much you should earn. Obviously you will return the favour by sitting on their remuneration committees and making sure they earn a fat wedge as well.

At the moment companies do not even have to declare how much all their directors earn (except collectively) and certainly do not have to get approval from the shareholders (the owners of the company remember) for their generous salaries and perks, and pension contributions.

Fred the Shred would be turning in his grave, if he were dead. Imagine putting his pension plan before the RBS shareholders for approval. He wouldn't even have dared ask.

So, another good one from Cameron.

Labour carping can be discounted. They didn't do anything about this the whole time they were in office so they should shut up now.

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