Sainsbury's boss Justin King says top pay out of control

All the fun of the unfair!

Britain is running two economies it seems to me. The good well-structured, well-managed one and the one run by dirty rotten scoundrels. Justin King is the chief executive of Sainsbury's. He came into the business when it was in a tail spin and turned it around and has made a success of it. He gets a salary of £900,000 for being in charge of the company. Considering he has the responsibilities he has, I don't think this outlandish in the commercial world. He said on BBC Question Time last night that pay is out of control in some organisations because there is no transparent link between pay and performance. He went on to say that those running companies need to start listening to those who see 'something rotten' about the pay for those at the top.

Something rotten? The good economy cannot continue to be the last chance saloon for the bad economy. These saloons all have the same name. "Bailout Bonanza!". Utterly hopeless to continue as such. I applaud Justin King for standing up and saying such things. These bosses carrying away cash bonuses for mediocre performance are sheer hypocrites. They'd sack their staff if such antics occurred in the lower levels of the business. How come they are immune?

Shareholders need to get a grip and get these laggard leaders into line. If they won't, then Vince Cable needs to legislate so that remuneration committees are seen as above board and not cosy cabals of self-serving bonus grabbers all filling their pots as if in a sushi restaurant.

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Banks, bonuses and "corrosive" executive pay

John Varley relaxing between pay increases

The banks are back in the headlines. Not that they've been out much. A bit like the old Top Twenty with Alan "Fluff" Freeman. "....and still at No.1, it's John Varley and the Barclay's Bank Band with their version of Jackie Wilson's Higher and Higher......"

The High Pay Commission has been looking into the touchy subject of executive pay. The commission was set up with charity funding to investigate boardroom pay. Its year-long inquiry found that the pay of top executives at a number of FTSE companies had risen by more than 4,000% on average in the last 30 years. That leaves the minions way down the pecking order. Now one of the top executives selected for the publicity effect was John Varley, erstwhile chief bottlewasher at Barclays Bank. Mr Varley was offered and readily accepted a pay packet stuffed with a cool £4,365,636! Now admittedly he didn't run home with all that. The taxman took 60% of it for sloshing around the general economy. However, it's the thought that he sees his value to Barclays as 169 times more effective as the lowest paid worker.

I'd have thought, now that banks don't have bank managers anymore, just managers of financial shops, that pay should be based on how well the company has been run and not on an expectation that executive pay rises higher and higher each year REGARDLESS of company fortunes.

These remuneration committees should be transparent, above board and totally reflective of the company structure. They should include at least one representative for each of these groups - shareholders, staff, and customers. Yes, customers! Public companies are just that. Publicly quoted with public responsibilities. Far too many are run for the convenience of the bosses who have got there, yes, by merit, but mostly by design.

BSkyB is said to be trying to fight off "a shareholder revolt", so have installed a French executive banker and Martin Gilbert, the boss of Aberdeen Asset Management, to do their bidding. Are shareholders no longer seen as having the right to a say in THEIR company? Aberdeen Asset Management claims on its website to have impeccable corporate social responsibility. "At Aberdeen we strive to do our best for the environment and society as well as our clients, employees and shareholders. Corporate social responsibility (CSR) is a fundamental part of our business ethos at Aberdeen. It forms part of our business strategy, as well as playing a key role in how we operate and manage money around the world." All very well, but is propping up James Murdoch and his seedy doings all part of it?

As I've said on this blog before, I am all in favour of handsome rewards for success. But not largesse for just being there. I had hoped Vince Cable would go through these FTSE firms with a liberal dose of salts, flushing out the corrupt practices and flagrant abuses of shareholders' rights and opinions.

I'm still waiting and hoping.

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Solihull Council speaks up!

This is the message from our Chief Executive at Solihull Council regarding the snow!

Message from the Chief Executive

School Closures - Tuesday 3 February 2009
In response to a number of enquiries from parents, carers and the wider community this morning, please find below the Council's rationale for decision to close the Borough's schools today.

The primary reasons for reaching a decision to close were:

*The weather forecasts received from the Met Office throughout Monday 2nd repeatedly indicated further potentially significant falls of snow - both during the afternoon (which, indeed, materialised) and overnight (which did not materialise). Additionally, it was also forecast that, following the further falls, there would be a drop to sub zero temperatures before dawn resulting in dangerous icy conditions on untreated surfaces;
*Throughout Monday morning and afternoon, the Council had received a range of calls from head teachers, parents/carers and the public expressing concern for the safety of children, young people and workers should there be further snowfall and/or ice - and, importantly, asking for an early decision about the likelihood of closures in order for childcare plans be made;
*Information from neighbouring Councils suggested that they were in the same position in terms of forecasting more snow (and overnight ice), receiving concerns about pupil safety and being requested to make an early decision.

In the past, it has been common to wait until early morning to announce closures, but this has proven problematic in terms of the short notice it leaves for making childcare arrangements. Therefore, with the above factors in mind, it was decided that it would be most helpful to advise schools and the media in advance of the main evening news bulletins (at 6.00 pm) of our intention - which, on the available information, strongly suggested that closures would be justifiable and necessary.

As it turned out, the weather conditions did not materialise and it is probable that many, if not all, of our schools could have opened today. As the Council's Chief Executive I fully accept responsibility for the decision taken yesterday and regret that the Council's proactivity has proven unnecessary in the changed circumstances of much improved weather conditions. I do apologise to those children, young people and families who have had a disrupted day and hope that you will understand the inexact science involved in reaching a decision.

It is with some trepidation that I announce that it is the Council's advice to all schools that they can safely re-open tomorrow (ie Wednesday 4th February).

Mark Rogers
Chief Executive

He may be concerned, but not enough to get the playgrounds of the two schools my children attend freed from snow. All that happened was that the schools closed. Chief executives are paid handsomely for the work they do. In emergencies or situations like this, it is paramount that common sense prevails. Mr. Rogers has "inexact science" to rely on. The weather forecast predicted no snow for today. Actually, he is concerned about the authority being sued over accidents. But he would not get accidents if he cleared the playgrounds of snow. I contend that this is a very poor reaction to a very simple matter. If he is relying on Mother Nature to bail him out we have come to a pretty poor pass!

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