Today's Labour News

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earningsAnn Crotty writes about the “remarkably vague” commitment at the recent jobs summit that “business" would be encouraged to disclose pay differentials.  

She says the one certainty about the disclosure of pay differentials is that it will do nothing to reduce the rapidly widening gap between executives and workers.  The assumption that disclosing pay differentials might somehow help to restrain the stratospheric increases that boards award their executives every year is based on the belief that corporate leaders have some sensitivity to the social setting in which they operate.  That was the same belief behind the initial campaign to get boards of listed companies to disclose details of their executive pay almost 20 years ago.  All that disclosure did was ensure executive pay spiralled steeply upwards as executives ignored society – and possibly economic fundamentals — and focused on being paid at least as much as their peers.  A fabulously wealthy remuneration industry was created as boards sought to justify their greed by reference to the "hotly contested market" for executive talent.  Crotty maintains that the lack of any action from the government may be due to the useful cover the private sector provides for the overpayment of public sector employees.  She concludes that the jobs summit suggestion was nothing more than frippery.

  • Read this article by Ann Crotty in full at Financial Mail (paywall access)


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