links for 2009-06-10
"As I recently pointed out (see "Bosses' pay and WPP"), the average remuneration of FTSE 100 chief executives has risen 295% over the past decade, compared with a 44% rise in the typical pay of a British employee. It is counter-intuitive that the productivity of those at the top has risen so much faster than the productivity of everyone else. And if you needed evidence, the average value of FTSE 100 companies – which is supposed to capture the effects of management genius over the longer term – fell 23% over those 10 years. In other words, the owners of FTSE 100 companies – that's millions of us through our pension funds and savings schemes – have not been paying for performance. We've been rewarding these chaps (and they are mostly chaps) for value destruction on a colossal scale."