THE CHIEF EXECUTIVE GLUTTONS

THE CHIEF EXECUTIVE GLUTTONS
Passive Shareholders need to wake up.

I am totally fed up with Recruitment companies and Headhunters saying - You must pay the market rate in the Global market for Senior Executives.
Great is it not for their fees !
Well, I am one who thinks that it is a disgrace and scandal that BP Board of Directors proposed to pay their Chief Executive
£14 Millions a year remuneration package for producing poor annual results - a loss of £3.4 Billion. His salary goes up 20%. Even if BP recorded good results, this level of remuneration is perverse. Thank Goodness that the shareholders rejected the proposal. However, BP are not alone. Most of our Top 100 companies and Banks overpay their Top Directors. Of course, the Remuneration system is a vicious circle. All the Directors are Gluttons. If they agree the top salary for the Chief Executive, there is a cascade effect on their own Gluttonous remuneration packages.
The same Gluttonous statement applies to the Civil Service, although on a more modest scale. Most of the Permanent Secretaries and Top Scale Civil Servants are all overpaid. The same self perpetuating circle of salary assessments is at work in all Government Departments. We must not forget the other Gluttons - The NHS Chief Executives and the Chief Executives of Quangos.

Just consider this for a moment - with an income of £14 Millions, after allowances, how much tax will the Chief Executive pay ? Do they pay 40% tax rate or is this watered down in some way ?
Instead of hounding MPs, how about hounding Chief Executives who earn £1million plus per annum for tax ? Or for that matter, check and double check those people earning £500,000 plus per annum.

I want to make my view crystal clear - these Chief Executives and Senior Executives do NOT deserve these grotesque levels of remuneration. They are not worth it and do not deserve it.
Teams of workers make profits for companies. Consumers make profits for companies.

The pyramid of high salaries for some of these arrogant, aloof, poor Directors has gone high enough. Time for a 70% tax on salaries over £200,000. If they want to leave the UK in search of more money, let them and good riddance.

See my previous Article - The Gluttons of our Society. Google EUREKYS and scroll down the Menu on the right.
Britain, USA for example have produced a Society where some people earn £6,700 in pensions, many workers earn between £12,000. - £25,000 less taxes and a top echelon earn £500,000 per annum. Is this a fair, decent Society ? No it is not.
The trouble with the Labour Party is that they think that £30,000 per annum makes someone rich so they are candidates for more taxation. For goodness sake Labour wake up and concentrate on the Gluttons.
Conservative Party - do not overvalue these Gluttons. Remember that there are dozens of Executives who will willingly step into Director shoes if the Gluttons wish to leave the UK. They will not be missed so do not talk up their value.

Today in Britain we live in a very unbalanced, unfair Society. No-one is doing anything about it.
You will hear Politicians say - We must reward initiative. Yes, of course we must. But, do we have to pay Chairmen and Chief
Executives £1 Million plus a year ?

Corporate Governance is a Team effort. It has many layers. Hundreds of people contribute to the success of the company.
Shareholders to not create success. So, they must take equal shares with the Workforce in Financial returns. Yes, a revolution in thinking about Returns on Capital Employed and Returns on Worker Efforts. At present there is s massive imbalance.

Time to start reviewing  the rewards of success, high income taxation and the rewards of stakeholders.

Tell the Inspector of Taxes at the HMRC to concentrate on the Directors of the Financial Times Top 1,000 companies and to concentrate resourses on this sector.
Investigate - Remuneration packages, investments, tax paid, money transfers to companies, offshore investments.
Priory Two - investigate Football stars, Music stars.
But, also tell the Government to provide the right level of staffing for the HMRC to be able to do the job. This is key priority. Also, the staff must be trained to do the thorough investigation.