Executive pay, sigh...

People are looking at executive pay in the news right now and asking people about what they think:


Problem with that is that its very narrow options and Bias:

Should pay be capped at 100x the average salary?
Should pay be capped at 10x the average salary?
Should pay be capped at £5,000,000 per year?
Should there be no restrictions on pay?

Clearly the last option is framed in a negative way.  Personally I would choose none of the above (however that was not an option, oddly).  I think a hard limit like these is unnatural.  I would not like a system that penalises winners and puts them on the same level as mediocre executives. 

Which might make you think that having a pay as a factor of the average would be good...WRONG... think about it in a global context.  China could have a director earning £10,000,000 per year and paying an average employee salary of £1,000 per year.  Where would you rather work if you were a director and good at your job?  Which would leave England with mediocrity...look forward to that.

At the end of the day democracy is built into businesses via shareholders, the government need not get involved.  Shareholders (you and me if we care enough) should decide the compensation to executives and just make it so that shareholders decide AFTER directors have done well, not before as the system is setup now.  Shareholders have Annual General Meetings (AMG) in which these things could be voted on.

Job done, no need for newspapers, politicians or anybody else.  I should run for Prime Minister!

Popular posts from this blog

Windows Server and the Task Scheduler Error Code 0x3

IPv6 Ready!

The living wage failure