I’m having a bit of a “row” with Sunny Hundal at the moment over on Facebook about his support for a “High Pay Commission”. I think the idea is probably well meaning but just barking up the wrong tree.
A genuine review (or even call it a commission if you must) of the best way to tackle excessive executive pay would be welcome - but as soon as people started suggesting that this may result in maximum wage regulation ratios, 90% taxation and a national “incomes policy” - it is simply a non-starter and even a distraction.
By co-incidence PIRC and the Railway Pensions fund are holding this “Say on Pay” event next month on UK’s experience of shareholders vote on remuneration (trends in Executive Pay both pre and post company AGM votes, level of shareholder opposition to remuneration reports).
There is actually currently no legal reason why we cannot get real independent shareowner representatives on Company boards and remuneration committees.
Personally I feel that we can only really tackle excessive pay when we have effective industrial and shareowners democracy. Don’t forget that employee representation on Company Boards is relatively common in many parts of Europe. Why aren’t we talking about this issue?
There also needs to be better regulation and fairer taxation but a High Pay Commission as currently spun will achieve nothing and set us back. IMO.
I’m not suggesting that Tom P agrees with me on this issue but I like his blog “about me” statement
“I'm interested in getting the labour movement and the Left to understand the capital markets properly. There's plenty that needs fixing, but we need to get beyond simplistic anti-City and anti-business rhetoric to do it”.
The “left” have got to stop retreating to their “Bash capitalism” comfort bunker whenever financial policy comes up.
