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August 31, 2007

Executive Pay

This doesn't, as it stands, show what people think it does:

Only a handful of top companies in continental Europe and the US are led by UK executives, despite claims that high levels of boardroom pay are essential to prevent a management brain drain.

If UK executive pay were at the correct level to attract the necessary talent, then you would not see many British executives running foreign companies: they would all be running UK ones. So the above can be rewritten:

Only a handful of top companies in continental Europe and the US are led by UK executives, because of the high levels of boardroom pay essential to prevent a management brain drain.
 

August 31, 2007 in Economics | Permalink

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Comments

But Tim you know that there is a problem with the way in which pay is set, large payoffs for failure and so on.
Leaving aside Chris Dillow style arguments about what CEO's actually contribute to company performance, if everyone wants to pay "above average" and everyone sits on everyone else's compensation committee then as night follows day there will be inflation.
Which is not to say that the current system is not the least bad approach!

Posted by: chrisc | Aug 31, 2007 9:22:23 AM

"are led by...": some of 'em couldn't lead a platoon out of a wet paper bag. Bah humbug.

Posted by: dearieme | Aug 31, 2007 6:02:58 PM