Thursday, November 03, 2011

Vote for me and I'll do the same

At the Qantas annual general meeting held just last Friday, the day before Qantas suspended all its flights, CEO Alan Joyce was in line for a very substantial pay rise, subject to a shareholder vote.

While you and I may fume about the obscene amounts of money executives pay themselves, there is little else we can do but vent our anger, verbally or in writing.

It is not that Alan Joyce's payrise went unchallenged, with a shareholders association representative, who held many proxies, opposing the payrise and speaking passionately against the rise, as did individual shareholders.

The problem is a 'you scratch my back and I'll scratch yours'. This needs to be addressed by our lawmakers, as there is no limit to how high executive pays can go.

While smaller and not so small shareholders may not want to increase the CEO's pay by huge amounts, invariably the institutional shareholders do, they perhaps being your superannuation fund. Should Qantas have holding in a large company, at that company's AGM, Qantas would vote for the a payrise for the CEO. I am not sure that I want my bank and my superannuation fund to continue to do this. It is all very cozy and really needs to be smashed.

An argument is often put forth that you need to pay world prices for the best executives, rather that paying peanuts and getting monkeys. To me it seems we pay gold, and still get monkeys.

4 comments:

  1. The top dollar for top exec arguements is a manifestation of the cult of stars. The idea that star players will produce star results. (which as you mention Andrew doesn't always work) People seem to have forgotten the cult of teams it is the total Qantas team of workers who produce the result.

    The one reason I can think of for substaintial salarys for CEOs is almost the other side of the same coin. After you have been Qantas CEO what do you do next? (no matter why you stop) So just like sports stars you need to get your lifetime earnings quickly as you may be injured out of the game.

    ReplyDelete
  2. Seems like he's being paid with golden peanuts and should be given his marching orders back ireland with his tail between his legs what a disgrace :-).

    ReplyDelete
  3. I suppose monkeys are attracted by shiny things.

    ReplyDelete
  4. Big Dog, surely after being a Qantas CEO or a successful sports person, you hardly need to worry about money, whether you are overpaid or relatively underpaid. They can learn the art of bonsai.

    Windsmoke, can I just reinforce your point, and utter disgrace. Deport him.

    Seems to be so Victor.

    ReplyDelete