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Jul 14 2014 01:54pm
http://www.bbc.com/news/28286264

Quote
Executive pay has grown from 60 times that of the average worker to almost 180 times since the 1990s, according to a report.

The High Pay Centre, a think tank, said shareholders were still backing high executive pay deals despite new powers to vote them down at annual meetings.

The pay of the average FTSE 100 chief executive increased from £4.1m to £4.7m last year, said the report.

The government should take action to close the pay gap, it said.

In October, new rules came into effect forcing listed firms to give shareholders a binding vote on directors' pay.
Executive 'elite'

A firm's remuneration policy now requires the approval of more than 50% of shareholders for a policy to pass.

Business Secretary Vince Cable introduced the shift to make a "clearer link between pay and performance".

The High Pay Centre's report says that, without further action, trust in business will be damaged by the perception that an executive "elite" is reaping all the rewards from economic growth.

"The government's tinkering won't bring about a proper change in the UK's pay culture," High Pay Centre director Deborah Hargreaves said.
Burberry stand

"A maximum pay ratio would recognise the important principle that all workers should share in a company's success and that gaps between those at the top and low and middle earners cannot just get wider and wider."

Last week, 52% of shareholders voted not to support the remuneration report at fashion house Burberry, in a rare stand against large salaries.

It is rare that protesting shareholders are in a majority, having happened just six times since 2000.

Among the most recent examples was that of the insurance giant, Aviva. In 2012 investors voted against the pay package of the then chief executive, Andrew Moss.

He resigned shortly afterwards.


Regarding the bold, that's already happening. Maybe less so in the US because of Reagan-induced delusions, but over here there is a growing distrust towards corporations and especially CEO's (even to those who do not deserve the scorn!)

How would you respond to a pay ratio between highest earner and lowest earner in a company?
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Jul 14 2014 02:37pm
It's really beyond me how someone could throw up a fuss and quit a company over <10% of a pay package worth tens, or hundreds, of millions.

I assume CEO pay figures include stock incentives.. and I'm surprised there isn't already more involvement between shareholders and CEO pay.

.5% of net revenue really is a lot considering hundreds of billions net revenue, and this is a yearly salary and not a contract.
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Jul 14 2014 03:23pm
I like how Whole Foods Market does salaries. There's an executive cap that says they can't make more than 19 times the average employee salary. The ceo also makes $1/year and doesn't take stock options.
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Jul 14 2014 05:37pm
what happened to Marie Anoinette seem like a reasonable solution....
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Jul 14 2014 06:10pm
Quote (dark-soul @ Jul 14 2014 04:23pm)
I like how Whole Foods Market does salaries. There's an executive cap that says they can't make more than 19 times the average employee salary. The ceo also makes $1/year and doesn't take stock options.


Sounds like a company that bent over for liberals. Fuck that.
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Jul 14 2014 06:29pm
Quote (IceMage @ Jul 14 2014 07:10pm)
Sounds like a company that bent over for liberals.  Fuck that.


Well business is doing really well for them and they're always in the top 100 companies to work for. So whatever they're doing is working.
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Jul 14 2014 06:31pm
Quote (dark-soul @ Jul 14 2014 07:29pm)
Well business is doing really well for them and they're always in the top 100 companies to work for. So whatever they're doing is working.


I'm sure the meager executive pay is the reason...
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Jul 14 2014 06:40pm
Quote (IceMage @ Jul 14 2014 06:31pm)
I'm sure the meager executive pay is the reason...


Tieing high pay to average pay ensured the average pay is increased any time the top pay wants a raise it would actually make sense that it is a great place to work as a direct result....
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Jul 14 2014 06:51pm
Quote (IceMage @ Jul 14 2014 07:31pm)
I'm sure the meager executive pay is the reason...


It seems like a smart policy to have. Because of their pay gap the average pay is 39k which would make employees happy to work there. Happy employees leads to better customer service and better sales. Less money to execs means more money put back into the store as well.

This post was edited by dark-soul on Jul 14 2014 06:54pm
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Jul 14 2014 06:57pm
will the inherent contradictions of the capitalist system bring its' end forth?
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