Corbyn suggests earnings limit

[L00b 441]

There's no link between high executive pay and performance though L00b

That is contentious.

 

I'd argue that the differential has reached such proportions, in the context of capitalistic markets having reached such a level of volatility since 2008, that this 'link' is now far more tenuous, than it ever was.

 

But logically, it cannot be wholly inexistent, else that means there are effectively no market forces influencing top level exec remuneration, i.e. there is influence beyond that of an oligopoly.

Is this right? And if it isn't then what's going to stop the gap continuing to increase?

Whilst I would tend to agree with an argument against 'excessive' pay on moral grounds, pragmatically I have seen (and worked with) enough companies (including even Fortune 500 ones) to appreciate the difference between the effect which a good exec (or team thereof) has on company performance vs the alternative.

 

And reciprocally. I mean, it's not as if everybody doesn't remember Paul Flowers, right?

 

The only force which I can see stopping the gap from increasing, is a backlash by a critical mass of shareholding across a critical mass of those big corps which set the exec remuneration pace at the global level.

 

EDIT: thinking about the issue for a minute longer, I see a valid analogy between a company's top execs contribution and a company's IP contribution. You know what they both cost (and they can cost a lot), but it's extremely difficult to value them accurately, so you're left to try and value them by perception (what opportunities do they bring? what deals do they facilitate? what new revenue streams do they spout? <etc.>), knowing all along what the cost of doing without is significantly more than the cost doing with.

Edited January 11, 2017 by L00b

[Cyclone 10]

Yes that probably amused you for a minute, but unlike all those who went before and simply thought it would be nice, the inventors of powered they did have a pretty good idea how it would work. That's kind of required if you're to have any chance of succeeding.

 

I'm guessing that they had to start from a position of not knowing how it would work, and then build on that, the 'great idea' bit comes first, turning that into a practical solution comes after.

[tinfoilhat 11]

I'm guessing that they had to start from a position of not knowing how it would work, and then build on that, the 'great idea' bit comes first, turning that into a practical solution comes after.

 

Well, in fairness the poster concerned may have some fully formed ideas, projections on the impact on tax revenue, interviews with some top execs or the CBI to see how it may effect business in whats likely to be a challenging couple of years in this country.

 

Rep123, the floor is yours.

[Localman 10]

When I started working in a bank nearly 50 years ago, the highest paid executive was paid 16 times the salary of the lowest paid adult employee.

 

Today, the successor bank pays its highest paid executives more than 160 times the salary of the lowest paid adult employee (and, with bonuses, some staff are well in excess of this).

 

The differential isn't justified and it has nothing to do with performance, commitment, loyalty...

 

In fact, the difference is simply obscene.

 

However, like everything else he has done, Corbyn has made a complete pig's ear of the issue and, quite rightly, has had excrement poured all over him and his proposals (which kept changing every time he spoke yesterday) by former advisers like David Blanchflower and Richard Murphy.

[the_bloke 17]

'Oooh, maximum wage is a policy that works so well in Cuba and Venezuela. I'll make that a policy'

 

Once again, a policy that has been tried elsewhere to no social or economic benefit. They applied it to the banking sector in Egypt recently and nearly all the high ranking staff left the country as a result, creating a brain drain.

[Jacktari 10]

'Oooh, maximum wage is a policy that works so well in Cuba and Venezuela. I'll make that a policy'

 

Once again, a policy that has been tried elsewhere to no social or economic benefit. They applied it to the banking sector in Egypt recently and nearly all the high ranking staff left the country as a result, creating a brain drain.

 

You seem to be suggesting that this country is in someway better than those you mention.

Where do you get that impression?

A serious question, for this country seems like a fart in a trance.

[the_bloke 17]

You seem to be suggesting that this country is in someway better than those you mention.

Where do you get that impression?

A serious question, for this country seems like a fart in a trance.

 

Is our inflation at 700%? Are we only allowed to buy food on designated days? Are our highest denomination notes so worthless that some transactions are carried out by weight rather than counting the notes? If you think the UK is on a par with Venezuela for quality of life then I suggest some more research is needed.

 

Why have you made a new account anyway? What was the name of your old one? Serious question.

[Robin-H 11]

You seem to be suggesting that this country is in someway better than those you mention.

Where do you get that impression?

A serious question, for this country seems like a fart in a trance.

 

Wow. Are you honestly asking why living in this country is better than living in Cuba or Venezuela? Do some reading.

[Jacktari 10]

Wow. Are you honestly asking why living in this country is better than living in Cuba or Venezuela? Do some reading.

 

What do you think? You don't know

I have never lived there, so I don't know.

From what I have read on this site, you all seem to know everything, about everything, from what you can prove to each other from google.

Half a dozen or so individuals in a backwater town know the lot.

You are wasted on a chat site,

[unbeliever 10]

What do you think? You don't know

I have never lived there, so I don't know.

From what I have read on this site, you all seem to know everything, about everything, from what you can prove to each other from google.

Half a dozen or so individuals in a backwater town know the lot.

You are wasted on a chat site,

 

So you object to the existence of this debate amongst laymen. That's fine.

Have you considered self-exclusion as a solution?

[Robin-H 11]

What do you think? You don't know

I have never lived there, so I don't know.

From what I have read on this site, you all seem to know everything, about everything, from what you can prove to each other from google.

Half a dozen or so individuals in a backwater town know the lot.

You are wasted on a chat site,

 

Haha. Cheerio then.

[Jacktari 10]

Haha. Cheerio then.

 

Why. Are you going?

You really all must buck up.

From what I read you are all very miserable, and down in the dumps.

Don't forget.

They are only powerful, because you let them be.

Edited January 11, 2017 by Jacktari