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Yet again we approach the bonus season for Bankers – not much seems to have changed and yes, we are still talking about it!
The public in the main are still angry about their pay, shareholders undoubtedly have strong views too but are powerless to influence change and block large pay outs to bosses.
Mr Cameron says he is determined to end the “merry-go-round” of super-rich bosses rubber-stamping each other’s enormous salaries and being rewarded for failure – even if that means legislation.
Research from the Institute for Public Policy Research (IPPR) suggests chief executives in 87 of the FTSE 100 companies took home an average of £5.1m in basic pay, bonuses, share incentives and pension contributions in 2010-11.
This represents a year-on-year increase of 33%, while the average increase in company value was 24% according to the think tank.
Does this “make your blood boil” as Mr Cameron says?
This maybe a solo position but I am not against a bonus culture, providing it is linked to positive performance and within a scheme that contains the necessary checks and balances to monitor this. Isn’t this how all businesses run?
Clearly not all banks are the same and we should not tarnish them all with the same brush ! However, it would be a very sad indication of an overall banking culture if legislation was needed to control a fair bonus culture.
What are your thoughts on the matter?
Angela Hickmore is a Director at Interim Partners.
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January 21st, 2012 at 9:44 am
All banks are the same but there is little that any government will do about them because – like it or not – they are the only route that we have to prosperity as we have abandoned manufacturing and given small businesses too hard a time for the fantastic creative people we have in this country to succeed.
I would like to see a government that did the right thing for the country rather than focusing on reelection all the time.