Poor Hester...

coastline

grizzly1911 wrote: »

Is that all to do with CEO pay rising or is it due to the cost of automation and IT which in turn forces down the need for skilled labour too with pay falling to the lowest levels. for less skilled/unskilled workers?

I saw an example in the UK a while ago where it mentioned boardroom pay being 12 times average earnings in the 1980's and now many are on 40 times.

http://www.guardian.co.uk/business/2012/feb/22/greggs-chief-executive-pay-mike-darrington

US link..

http://economistsview.typepad.com/economistsview/2012/04/citigroups-shareholder-revolt.html?cid=6a00d83451b33869e20168ea569645970c

chewmylegoff

i was "headhunted" for a risk/compliance job in about 2010 by someone from RBS, who was very keen to explain their "unique remuneration system" which set them aside from their competitors. it turned out that they wanted to pay me in worthless RBS shares.

i'm sure mr hester will be very happy with the worthless RBS shares he receives in lieu of an actual bonus.

Thrugelmir

grizzly1911 wrote: »

Who agrees to pay the salary/bonmuses as they are largely state owned (yes Thrug I know we need to keep the talent etc.)?

Hester was appointed post crisis. I'm sure that if public abuse became too much he would have no problem getting another job.

My guess. He'll waive the share bonus. As if he's like another CEO I know. He's a work alcoholic who thrives on the challenge.

New guy at Barclays is setting the tone.

globalds

It seems to have become allowable without question that when asked why a persons wages are so high ..A response that it is the industry standard for such work is accepted.
But surely all those people going for job interviews and demanding no less than the standard ...Is pushing this " standard " ever upwards ..

Fella

Thrugelmir wrote: »

Hester was appointed post crisis. I'm sure that if public abuse became too much he would have no problem getting another job.

Hester seems to be doing a good job. The furore over his wages is infantile, his wages are utterly irrelevant. If he does a great job then wages of £100million would have been value. OTOH if he does a terrible job then £7/hour would have been poor value.


Lots of morons (not aiming at OP) who love to moan about what bankers earn at the moment & don't even attempt to differenciate between those who contributed to the mess & those who may help get us out of it. Utter bigotry but as we know, bigotry is fine as long as it's bankers you're prejudiced against.

IronWolf

It's really not that big of a pay packet relative to other CEOs.

You could argue CEOs in general are overpaid, some most definitely are, but I'm not going to spend my time trying to bring others down to my level, I'd rather spend it trying to get up to their level and become the one being paid 'too much'.

CLAPTON

Fella wrote: »

Hester seems to be doing a good job. The furore over his wages is infantile, his wages are utterly irrelevant. If he does a great job then wages of £100million would have been value. OTOH if he does a terrible job then £7/hour would have been poor value.


Lots of morons (not aiming at OP) who love to moan about what bankers earn at the moment & don't even attempt to differenciate between those who contributed to the mess & those who may help get us out of it. Utter bigotry but as we know, bigotry is fine as long as it's bankers you're prejudiced against.

It is not infantile to have a view as to whether executive pay is too high.
Firstly there are the divisive social consequences and secondly the reasonable well documented effect of creating insufficient demand in the economy. Many feel the current financial meltdown was largely caused by this effect.

There is no conceivable way of knowing whether Hester is doing a 'good' job relative that which some-one else would do for half the price.

The remuneration package for most board level people is determined by a cartel of similar people; many of these people are simply career journey men who have never risked a penny of their own money or ever actually started an enterprise.



Lots of people do a 'good' job but that doesn't mean they should earn a 'risk free' multi million income.

Thrugelmir

CLAPTON wrote: »

It is not infantile to have a view as to whether executive pay is too high.
Firstly there are the divisive social consequences and secondly the reasonable well documented effect of creating insufficient demand in the economy. Many feel the current financial meltdown was largely caused by this effect.

Banking is an international business. American banks pay to 2 to 3 times the rate. So not an easy one to solve.

CLAPTON

Thrugelmir wrote: »

Banking is an international business. American banks pay to 2 to 3 times the rate. So not an easy one to solve.

Maybe

in practice therefore all US banks should be full of non Americans going there for the extra money
I personally don't know the facsts but I would guess that isn't so.

and in any event banking isn't rocket science; the government is lending banks billions at about 1%; is it really difficult to make a profit if you can borrow at these low rates.

the issue is there are plenty of people in the UK that understand banking that could do the job at least as well for a lot less.

Thrugelmir

CLAPTON wrote: »

the issue is there are plenty of people in the UK that understand banking that could do the job at least as well for a lot less.

Isn't that why we've ended up in a mess?

Bank balance sheets became so complex that no one understands what they contain. The BOE, FSA and US Treasury included. So may require a good steward to unwind them.

Hester has unwound around £700 billion of assets so far. Given there's not been sizable losses. A fair feat in my mind.