Tired of Banker’s Bonuses? It’s about time we all Have Our Say on High Pay!

"Over the past decade, while executive pay has grown by over 323%, the average UKearnings have grown by a mere 54%. Across the nation, ordinary workers have felt outraged by the continuing gap between the lowest and the highest paid earners but felt powerless to do anything. This growing inequality is particularly distasteful considering the current economic situation, with high unemployment and pension cuts creating hardship for many.

But how can we tackle this culture of excess? Vince Cable thinks that it is up to the shareholders of companies to hold the boardroom to account. However, despite the vast increases in bonuses and single performance incentives, not to mention “Golden Hellos” (a hefty sum paid to attract talent to the company), average levels of shareholder dissent have been stuck at around 9%, with outright defeat for these pay packages at annual general meetings remaining a rare spectacle.

We all have the power to influence these shareholders, who are mainly compromised of institutional investors. These anonymous ‘institutions’ are, among others, the pension funds and insurance companies who look after our retirement savings. In other words, the owners of corporate Britainare no longer a few rich individuals: they include anyone with pension savings, or around 11 million of us. This is our money!

The responsible investment charity FairPensions has launched ‘Your Say on HighPay’ at www.fairpensions.org.uk/highpayThis online action tool will email your pension fund or ISA provider telling them you want them to vote against excessive pay – and asking them to let you know about it. 

Whether the ‘Shareholder Spring’ proves to be a one-season wonder or something more permanent may yet be up to us". (Great guest post by MM).

While I was away...

I'm catching up on my RSS feeds and emails...

War on Want report "Stitched up" on the gross exploitation of women workers in the Bangladeshi garment industry.  The research is spot on but I was concerned that recommendations failed to mention any action or pressure on pension funds or insurance companies who own the companies that make money out of such misery.  Hat tip Phil T.

Tom P at Labour & Capital on the recent report on directors pensions by the High Pay Commission.  Double standards in boardrooms. Not only are directors paid far more than their workers but they build their pensions at a much higher rate - often with 1/30th DB schemes rather than 1/60th for their staff.

"A FTSE 100 director with a defined benefit pension could be expected to receive a
median annual pension worth £174,963 on retirement. The annual median pension paid from a private sector defined benefit pension scheme was £5,860 for the rest of the work force".

Good to see "Labourhome" back after nearly 2 years offline. Welcome back Alex! I notice that they are moderating comments :)

Astonishing history link from normblog "Trumpeter Landfrey, a bugler in the Light Brigade at the Battle of Balaklava (October 25, 1854), sounds the charge again, playing a trumpet that was used at the Battle of Waterloo in 1815. The recording was made in 1890 and you can listen to it here. (Via.)".

Tribute at UNISONActive here to Newcastle City Branch Secretary and Northern Region Deputy Convenor, Kenny Bell, who died of cancer on August 14.  Kenny was quite simply a top trade unionist and will be sadly missed.   UNISONActive also has a link to this Guardian article on the true cost to workers of outsourcing which I will post further upon later this week.