Sunday, 8 January 2012

Cameron on the Ball

Well, in a bid to placate angry voters still reeling from the outrageous salaries and bonuses awarded to the very CEOs that got us into this mess, David Cameron has announced that he's going to make shareholders responsible for voting on CEO's pay.

Brilliant.

So in a bid to wrestle control from the grip of greedy corporations, he has put it into the hands of... greedy corporations.

Who are the shareholders in these companies? Is it people like you and me who go along to the AGMs with our sandwiches and flasks?

No.

The votes will be controlled by the institutional shareholders; fund managers, investment banks etc.

One of the big problems with the way our economy works is that corporate strategy isn't driven by customers or the environment. It's driven by institutional shareholders who want to make a quick profit on their shares. And the problem with that is that they get to call the shots with the CEOs. So now they're going to control CEOs' pay. Hmm... will that make the problem better or worse, do you think?

Ah well, we all knew when we voted Conservative that they will always favour the needs of the market economy. Can't say we weren't warned.

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