robinthehood
Hacker
https://www.bbc.co.uk/news/business-51000217
A fair deal for a hard working exec, or an obscene level of pay that needs tackling?
A fair deal for a hard working exec, or an obscene level of pay that needs tackling?
Kerching!
- Thread starter robinthehood
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MegaSteve
Tour Winner
Utterly obscene...
Wolf
Well-known member
Its an obscene wage but I don't blame the person earning it more the company thats willing to pay it.
I'd love to know where they get the national average wage numbers from though as imo they're totally skewed and id argue people earn a lot less than that on average.
I'd love to know where they get the national average wage numbers from though as imo they're totally skewed and id argue people earn a lot less than that on average.
Bunkermagnet
Journeyman Pro
Yes it’s a lot of money, but IF the company they are in charge of grows, makes a good profit, rewards the staff well then why not. If the company doesn’t or share price drops then no, take money off them.
yes, when its losing money, raiding the pension funds etc, i have the problm with.
MegaSteve
Tour Winner
One-hundred and seventeen times the average wage is unjustifiable...
Dibby
Assistant Pro
The short term nature of execs contracts bothers me more. These days most executives are incentivised over relatively short periods, meaning that if they act rationally and maximise their compensation they are not necessarily doing what is best for the long term future of the business that they are leading. Examples such as key personnel being cut, and knowledge being outsourced to save money, share buybacks to raise the price, adjusting the books to get a good EPS etc..
It's similar to political leadership, parties will only do what favours them over an election cycle, rather than the long term because the individuals involved will liekly not be around to reap the benefit.
Easy to highlight the problem, less easy to find a workable solution.
It's similar to political leadership, parties will only do what favours them over an election cycle, rather than the long term because the individuals involved will liekly not be around to reap the benefit.
Easy to highlight the problem, less easy to find a workable solution.
Tashyboy
Please don’t ask to see my tatts 👍
Don’t think it is just FTSE Chief execs that are paid to much, what about NHS trust chiefs. Railways, power companies, steel, Thomas Cook etc etc. All paid grossly over the top wages for what.
What P's me off more is the golden parachutes these guys have in their contracts. They get it wrong and they get booted with a massive payoff. Rewarded for failure. Can you imagine the guy on the shop floor being paid 2 years salary if he has a poor record and is sacked.
IanM
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Annual envy based news story. It's a free country....go get one of those mega jobs....
Ok, the gap is blooming daft, but how would you tackle it?
Set a max CEO salary... can do, but that would make the best folk go overseas to work. Is that a price worth paying?
Set the minimum wage at £20 per hour? Good idea, except that it would reduce the number of jobs. And, how much would you pay for your Big Mac to cover it?
Having worked closely with several such CEOs - they are worth their money. I wouldn't do it even if I was up to it. The pressure is crazy.... I have also been disgusted in other organisations how low paid folk are perceived and treated. (by some of the management, if not all of it) Equally, I've seen excellent behaviours in similar environments.
Good points above about bizarre rewards for failure....
But no, i have no answer, but the scenario is not always as painted.
Ok, the gap is blooming daft, but how would you tackle it?
Set a max CEO salary... can do, but that would make the best folk go overseas to work. Is that a price worth paying?
Set the minimum wage at £20 per hour? Good idea, except that it would reduce the number of jobs. And, how much would you pay for your Big Mac to cover it?
Having worked closely with several such CEOs - they are worth their money. I wouldn't do it even if I was up to it. The pressure is crazy.... I have also been disgusted in other organisations how low paid folk are perceived and treated. (by some of the management, if not all of it) Equally, I've seen excellent behaviours in similar environments.
Good points above about bizarre rewards for failure....
But no, i have no answer, but the scenario is not always as painted.
SwingsitlikeHogan
Major Champion
loadsamoney!!
Slab
Occasional Tour Caddy
Just imagine if they were footballers, earnings of 3, 5 even 10 times what these top CEO's are earning, now that's obscene
DR and PP have been spouting for a while about workers rights and the fact people can't be sacked for being poor at there job, i suspect they don't mean CEO and the like thoght
Highly stressful job, lots of responsibility, huge numbers of jobs depending on them making the right decisions, short life span in the role, top echelons of business. It's a cheap story, easy targets. Comparing their salary to standard workers salary is plain daft, they are not doing the same job, same responsibility etc
Tashyboy
Please don’t ask to see my tatts 👍
That’s where me etc etcs come in ?
Highly stressful; when you're trained and equipped for the job, no.
Lots of responsibility; see above. The responsibility is a fact but if you've grown into those roles its the same as an engineer needing to complete x number of services a day.
Short life span; be good at it and it isn't short but, like any job, the sack is there for poor performers.
Comparing the average MD/CEO salaries, they aren't massively above where I'd expect them to be in terms of a sliding scale from labourer up through the ladder of jobs in a company. Its the stupid ones with XX million in share bonuses/golden parachutes etc that are taking the whatsit.
It's stressful on the basis that at that level the company own you at all times. You are effectively on call every hour, every day. You are set constant targets by shareholders and they can be brutal if you don't meet them, whether your fault or not. I'm not shedding tears for these people, they know what they are getting into, they could leave if they wanted to and they are very well rewarded but you give over your life when you are in that position in a company.
My mobile voicemail was my out of hours/weekends call filter. Targets were based on market expectations, and achieving them was also based on creating the climate in which the team could achieve those targets. Reporting back to the shareholders that target hasn't been achieved because of ….. was accepted if it was a very valid reason, e.g. the exchange rate - having the £ 'v' € perform badly when local pricing was in £ but the material were bought in € and the dividend returned was reported on € was painful but valid.
I'd be tempted to say that it is the business owner, personally owned company, that suffers more.
IanM
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Sorry.... from my experience. That's quite wrong. Unless you mean not stressful about "doing the do"..... the stress comes from the potential outcomes and implications of what you do. (see the mental health thread)
Even the "doing is stressful." One role I had was well within my skills set. In fact I used to get invited around the World to talk about it. But when you get a phone call at 1.00am demanding a set of slides and pack is done for 9.00am the following morning, that's stressful. Very stressful indeed.
Was I well paid? Yes very. Did it damage my health? Yes eventually. Was it worth it? Absolutely not.
Rooter
Money List Winner
What if they are 117 x better at that job than an average joe? With great rewards comes great responsibility (or it should!) fair play to them!
