Wednesday, November 23, 2011

High pay is corrosive

Reported by BBC ,the high salaries of UK executives are "corrosive" to the economy, the High Pay Commission has argued. Its study lists a 12-point plan to stop "high pay creating inequalities last seen in the Victorian era".

These include forcing companies to publish a pay ratio between the highest paid executive and the company median.

Its year-long inquiry found that the pay of top executives at a number of FTSE companies had risen by more than 4,000% on average in the last 30 years.

Mr Cable said the vast disparities in pay were not good for society, and he would consider the proposals seriously.

He said: "It's not right that we have the situation that's been happening over the last decade where we have vast extreme awards paid on completely unrelated to the performance of companies.

"And that's not good for the consumers, it's not good for people who own the companies, it's not good for the people who work for them, and that's really got to be addressed."

Talent theory was called upon again by those corporate cabal.

However, Richard Evans, president of PepsiCo in the UK and Irish Republic, told the BBC that the UK has to be competitive with the rest of the world.

"If we want great people to come and work in the UK, given it's a global talent pool, we've got to be prepared to pay the amount of money that those executives can get elsewhere in the world," he said.

PAP have you heard that?

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