Erm, excuse me, what are they on about?
that pay must escalate in order
to attract the best talent from abroad
to UK companies, is a myth. Our own
evidence shows that global mobility is
limited, with only one successful FTSE
100 chief executive officer poached in
five years – and even this person was
poached by a British company.
Bit weird insisting on the word “poached” there isn’t it? The influence of foreigners on CEOs of FTSE 100 companies would be measured by how many foreigners were so employed, not how many were poached.
I’m not going to go through the whole list but Bob Diamond’s an American, The Lloyd’s head who is on stress leave is Spanish, Vodafone certainly was run by an Indian and that’s just those I can recall before the second cup of coffee.
They’re how to put this politely, rather picking their numbers, aren’t they?
This report, the final report from the
High Pay Commission, makes 12
recommendations to address what we see
as a crisis at the top of British business.
We believe it is time to act to build
transparency, accountability and fairness
into remuneration for senior executives in
That’s also pretty stupid. The FTSE 100 is not UK business: UK business is not the FTSE 100. FTSE is, by and large, a group of global businesses that are listed in London, the international financial capital of the world. There are very few companies there which are exclusively or even majority UK operating businesses.
We also get the classic call for permanent State jobs for the current members of this private sector voluntary commission:
12 Establish a permanent body to
monitor high pay
Our investigations have found that
escalating high pay is having a negative
impact on company performance, the
wider economy and trust in business.
We have been shocked at the limited
information available to the public, the
consequent lack of informed public
debate and the deep sense of unfairness
that this lack of openness engenders. We
recommend that a permanent body be
established on a social partnership basis,
much like the Low Pay Commission by
••monitor pay trends at the top of the
••police pay codes in UK companies
••ensure company legislation is
effective in ensuring transparency,
accountability and fairness in pay at
the top of British companies
••report annually to government and
the public on high pay.
Just couldn’t do without that, could we?
companies were licensed to trade by the
state and that inter-dependence and the
idea of ‘permission to trade’ underpinned
company activity until the late 1970s.15
Their reference is to the East India Company’s charter. You know, a state granted monopoly is exactly the way in which limited liability companies operated up until the 1970s?
I could go on having fun with this but no need to, not with that lovely little search function built into .pdf files these days.
At no point at all do they mention “globalisation”. Which is really rather an important point.
Within country inequality has been rising everywhere. The economic rewards have everywhere been flowing to the top, the top 1%, the top 0.1% even for those countries where we have the information. This is a global phenomenon: and as such has, at least one would think so, a global cause.
As I’ve been saying for years now, that global cause is globalisation itself.
Now I don’t say that they’ve got to agree with me that this is the cause: but I do say that they’ve got to at least consider that it might be, even if to reject it. Gini indexes, the percentage of income going to the top 1%, 0.1%, top peoples’ pay has been rising faster than median pay everywhere. This just isn’t something specific to the UK as they seem to think. And yet their report blames everything on specific changes within the UK.
Me, I reject this report as pure bollocks. They’ve not even considered the most obvious cause in rising in country inequality: globalisation. As such they’ve simply fapped themselves into a frenzy over the old, stale, hobby horses and not bothered in the slightest to get to grips with a proper analysis of why it has been happening.
And if you don’t bother to find out why something has been happening then you’ve got no chance whatsoever of proposing the necessary changes to stop it happening.
This whole High Pay Commission report is crap folks, utter shite.