UPDATE 28 Nov., 2016 --
Government declared, today, that the salaries for CEO are right and they deserve it. £4 to £7million a year is debatable. Even top surgeons, who do a far harder and responsible job plus had to study for many years, do not even get half as much.
What is completely out of order are the sky high bonuses of 200 pc to 400 pc of their very high salaries. What does the man work extra or achieve more to deserve these outrageous extras bonuses?
After all, at the end the taxpayers have to pay for it who forever get cut down more.
Every leading CEO’s salary is on average £4.6million a year.
The London School of Economic revealed shocking disclosure of Britain‘s chief executives’ salaries plus bonuses. According to the report they are hugely overpaid and it will not ruin the economy if their salaries and bonuses were slashed, on the contrary it would have positive effects. How do they come to that is hard to understand because as far as we know they spend most of their money abroad.
In a study held by the LSE it was discovered Top 10 international recruitment firms who handle 70 to 90 per cent of chief executive appointments were labelled as corporate kingmakers and the salaries and bonuses for the top chief executive is out of all proportion.
The report also high lighted that post could be filled with 100 people each which would work for far less doing the same job just as efficient or some even better.
It has now come to such a state that nobody would dare to suggest a reduced salary and bonus because it would be professional suicide.
A further outrageous extreme was revealed of Ex-boss of Barclays still received a large bonus even so he was sacked last year.
The study authors write: “If one was to offer to do the job for less, would that tip the decision in his or her favour? All the head-hunters agreed is would be a poor strategy.
“Indeed, it might be the asking for a large remuneration would have a positive effect securing the appointment.
“There was almost universal agreement amongst the search firms that levels of remunerations for CEO in large UK non-financial firms were absurdly high. All the interviews support the no how on an arbitrary norm for pay, which almost all firms felt was grossly and inappropriately high …. The general view of search firms felt it that a lower norm would not materially affect what happens.”
One head-hunter said: “I think there is an awful lot of FTSE 100 CEO who are pretty mediocre.”
Another added: “I think that the wage drift over the past 10 years, or the salary drift, has been inexcusable, incomprehensible, and it is very serious for the social fabric of the country.”
Just two examples: Morrison CEO Dalton Philips nearly doubled his income to £2.1million before he was sacked. This alone is contradicting.
Tesco’s boss David Lewis received £4.1million which was an increase to almost three times of his predecessor.
Yet these entire chief executive vote for Conservative Party which bring down the workers to lowest wage possible, starvation and job losses.
Max Steuer, reader emeritus at the LSE and author of the new research paper, Headhunter Methods for CEO Selection, published in the Journal of General Management, said there was little evidence that low pay would secure “brain drain”, as suggested.
The public have been aware for years of the outrageous salaries and bonuses which no man is worth it.
It was established three years ago that Britain has the highest numbers of millionaire bankers in the world but the report has done nothing. Now this new scandal again but will not make any difference.
It all refers back to the Conservative Government which encouraged in the last six years widening the gap between the rich and poor. It is also part of the “Old Boys Network” and to break it it would bring back the economy on a healthier and trade on a competitive footing.
Under the present Government it is unlikely to happen even so Mr Cameron always emphatically claims “We are all in this together”.
Statistic revealed that 1 percent is educated in Eton, Oxford and Cambridge but 70 to 80 per cent hold top CEO, doctors, lawyers, teachers and government positions. Those school and universities are not only there for teaching but also for establishing contacts to the network.
The report from LSE shows again a closed shop or networking with the establishment which tries to white-wash it with “if they do not get paid the highest salary and bonuses they would go to New York”.
Rumours have it that David Cameron was turned down by a number of blue-chipped banks and he applied to Conservative headquarters for a job in research. The interviewer would have turned him down had he not receive an anonymous phone call from Buckingham Palace advising to take him on.
It needs to be proven but it is doubtful it will be done. According to the report there are 100 for each post able to do the same job for far less money, maybe even better. It will not be put to the test because the tight network would collapse and all would lose out including those high-ranking agencies.