People holding the topmost position of the top companies in Britain are being paid more and more every year. The issue is similar to Bangladesh in so many ways. Research showed that their payment is increasing five times more than that of an ordinary employee. For Instance, the annual pay of FTSE 100 CEO in 2011 was more than £3 million, which is an 8.5% rise from last year. It came to everyone as a surprise because last year was not good for the investors. The case is similar in Grameen Phone, Banglalink, Airtel and other mobile operators of Bangladesh.
For the ordinary workers, the average salary rise was just 1.6% when the inflation rate is more than 3.5%. This is making growth prospects even harder. George Osborne, the Chancellor, has received several questions from the business community and the City Council to plan a new growth prospect. But who would ask the questions in Bangladesh?
More bad news for the investors is that the FTSE 100 has fallen down more than 6.5% during the last fiscal year. This basically means that the Chief Executive is in a much better state than the company itself. This news will strike the shareholders very hard and especially after the phenomenon which is being called “Shareholder Spring”. During the “Shareholder Spring” period, investors voted down the bonus packages of the directors. Three bosses from Aviva, AstraZeneca and Trinity Mirror were voted down as well. This affected companies like Barclays, WPP, M&S, Premier Food, Man Group, Pendragon etc.
This unforeseen anger of the shareholders worked as a catalyst when Business Secretary Vince Cable declared that the government will give shareholders the power to veto any executive pay rise. Surprisingly, the executive pay rise of 2010 was even more than 2011. The average executive pay rise was 23% in 2010. The researchers concluded that the company bosses are finally realizing that they cannot start a dictatorship type situation within their companies.
Chairperson of the High Pay Centre, Deborah Hargreaves stated that these situations still indicate towards the fact that executive pay is still increasing more than average wages. The pressure needs to be on the bosses of top companies till the point when they realize that they need to stop unfair executive pay rise. It is unfortunate that such pressure groups do not exist in Bangladesh, hence nothing can be done. But it makes at least some people happy – the top ones!
For the ordinary workers, the average salary rise was just 1.6% when the inflation rate is more than 3.5%. This is making growth prospects even harder. George Osborne, the Chancellor, has received several questions from the business community and the City Council to plan a new growth prospect. But who would ask the questions in Bangladesh?
More bad news for the investors is that the FTSE 100 has fallen down more than 6.5% during the last fiscal year. This basically means that the Chief Executive is in a much better state than the company itself. This news will strike the shareholders very hard and especially after the phenomenon which is being called “Shareholder Spring”. During the “Shareholder Spring” period, investors voted down the bonus packages of the directors. Three bosses from Aviva, AstraZeneca and Trinity Mirror were voted down as well. This affected companies like Barclays, WPP, M&S, Premier Food, Man Group, Pendragon etc.
This unforeseen anger of the shareholders worked as a catalyst when Business Secretary Vince Cable declared that the government will give shareholders the power to veto any executive pay rise. Surprisingly, the executive pay rise of 2010 was even more than 2011. The average executive pay rise was 23% in 2010. The researchers concluded that the company bosses are finally realizing that they cannot start a dictatorship type situation within their companies.
Chairperson of the High Pay Centre, Deborah Hargreaves stated that these situations still indicate towards the fact that executive pay is still increasing more than average wages. The pressure needs to be on the bosses of top companies till the point when they realize that they need to stop unfair executive pay rise. It is unfortunate that such pressure groups do not exist in Bangladesh, hence nothing can be done. But it makes at least some people happy – the top ones!
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