Is There Any Good Reason To Force Publicly Listed Companies To Reveal Executive Pay?

[sp1814]

Executives will always be paid far more than the average worker, because averages salaries will include those on the minimum wage.

What good can come of this?

http://www.independent.co.uk/news/uk/politics/government-plan-executive-pay-company-boards-ftse-chief-executive-inequality-greg-clark-theresa-may-a7911516.html

[douglas9401]

No good! What's more it'll drive 'the best people' elsewhere in the world where their obvious but jealously derided talents are valued.

Places like Narnia and Lilliput for example.

[Old_Geezer]

That they are paid more is hardly the point. Naming & shaming those greedy to the extent of taking the Michael may just stop some of the rip off behaviour.

[Deskdiary]

^^^what complete nonsense.

If somebody is being paid handsomely it is because they had the brains, talent and drive to succeed. – it has absolutely nothing to do with greed.

“Naming and shaming” is a reaction that is borne out of envy – akin to keying an Aston Martin.

Why should somebody be named and shamed just because they have had the temerity to do well in life.

An executive’s pay is of no business to anybody other than the executive and his employer.

[ummmm]

I agree with Deskdiary.

[waterboatman]

Me too.

[murraymints]

does not interest me in the least ! who cares ?

[-Talbot-]

Surely shareholders care?

[murraymints]

fair point.. but there will always be high versus low earners.. such is life !

[fiction-factory]

It's possible, like as is happening at the BBC, that this will have the opposite effect of what is intended. Some of slightly less paid execs will compare themselves with the better paid ones- both within their own company and in other companies- and will kick up a fuss, so it will push exec pay up further.
It's right that there should be large differentials to encourage people to take extra responsibility and to reward success, and to help attract the best candidates...but, having worked at something approaching this level I felt it seemed like an old boys' network where they would look after each other, hand out large pay increases to each other even in not so good times. We would pay someone £200000 a year because we were keen to get the best and they had been earning £180000 and had previously been headhunted from somewhere paying £150000, but when we got them we found they ppromised a lot but delivered little. A lot of these people come in promising the earth, shake things up a bit and then leave before anyone realises they have not helped at all, just left a mess.
Is it a good idea? I'm not sure overall. We'll have to wait and see

[cassa333]

Best answer should go to deskdiary.

Envy seems to be the motivating factor.

Although I think the a great deal of the lowest paid could do with a bit of a pay rise, this in turn would put the cost of living up so in reality would have little effect.

[Old_Geezer]

What they succeed in is attracting wealth. That does not give them a moral right to grab whatever they can get away with. They do so by overcharging whoever pays for a product or service, which means you in the long run. One can see it's so if one looks deep enough.

[Old_Geezer]

You must've meant worst answer.

[fiction-factory]

People can generally shop around if they are being overcharged though O_G unless it's almost a monopoly/cartel, so companies can't just keep putting up prices

[sp1814]

Exactly why should executives be ashamed of their salaries?

At what point does 'greed' kick in?

[Deskdiary]

Shareholders may get the opportunity to ratify or not the CEOs pay (in the vast majority of cases where this happens the pay is ratified – it only tends not to be if the performance of the company is poor and therefore whether the shareholders receive a dividend or not). They do not generally have a say in anybody else’s salary from the bog cleaner to the FD.

In any event, publicly listed companies must use the International Financial Reporting Standards, and one of the rules of this is that the salary of the highest paid director of the company is shown in their reports and accounts – which, of course, is usually the CEO. It is also a requirement for PLCs to publish their R&A on their website.

So, the salary of the highest paid director of any PLC is always publicly available.

[woofgang]

so you give best answer to someone who agrees with your preconception? Why bother to ask the question.

[jim360]

I just assumed that was how it works on AB.

[woofgang]

jim for global best answer

[jim360]

Do you mean... do you mean... I've won Answerbank?

OMG I'm so happy! *sobs like Winslet at the Oscars*

[woofgang]

Jim you just made my day