Wednesday, 17 September 2014

Chief executives' pay

Posted in: Discussion | On the ground

08/08/2008 2:24 pm

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Elizabeth Spring

Elizabeth Spring

Posts: 3

21/06/2010 5:03 pm

Utter waste of money. I heard a suggestion on R4 the other day, that all these fat salaried jobs get re-advertised at half their curent rate, with adequate experience and qualifications on the job/person specs. The suggestion was that as so many HA CEO's have built up their grotesque salaries through mergers and being in the right place at the right time, they are arrogant, untouchable & out of touch with reality and with their customers' experiences to a dangerous level.

There are thousands of people who'd do a competent  job for half or a quarter of that - the comparison to private business wages is irrelevant because these HA's were set up to help people who can't afford private housing, not to give business profits?

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Anonymous

Anonymous

21/06/2010 5:11 pm

Ok follow that through.

I or You take on that job for £80k pa (25%) of the current salary.  I do a competent job.  How many HAs would be offering me the same job with them for £150k or £250k within a year?

I or You would still retain the altruistic streak (charitable sector) yet be paid twice as much.  I would move as I suspect would 99% of people as the same altruism (job satisfaction / being able to live with oneself?) is there but a higher salary.

While HAs may have evolved in a charitable way, they exist in a marketplace and not in some theoretical vacuum.  Hence that suggestion on Radio 4 is a non-starter and incredibly naive. 

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Anonymous

Anonymous

21/06/2010 10:28 pm

If there is one good thing the current governemnt is doing it is governemnt putting a cap on HAs CEos salaries.

Could anyone who knows anything about CEOS honestly tell me any CEO at £80 a year would have not done a much better Ceo than John Belcher of the Anchor Trust who was paid £327,000 last year?

Any Ceos who is in social housing for the money should be told to try the Private sector. Probably most of them would not make any shortlist there.  Social Housing Ceos make their careers on back of public, highly unaccountable funding on are overlord of kingdoms where sacking them for their failures is highly unlikely, unlike the private sector where for any failure the shareholders would kick them out without any fuss about it.  

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Harry Lime

Harry Lime

Posts: 164

22/06/2010 9:05 am

That's right the private sector are  paragons of virtue in terms of dealing with underperforming CEO's - I mean look at BP and Prudential, their chiefs feet have barely touched the ground - oh, hold on......... 

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Anonymous

Anonymous

22/06/2010 9:21 am

BP will be made to pay and the CEO won't be there for long...

The shareholders will have to pay for that, not the governement or the public.

If the BP was a social sector firm the public would be made to pay and the CEO would be given knighthood by the queen. 

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Harry Lime

Harry Lime

Posts: 164

22/06/2010 9:48 am

If BP was a "social sector firm" even a potential £50bn fine would be a drop in the ocean compared to profits it would have already produced for the country.  Imagine that, the public owning huge firms that produce massive profits, imagine the country still owning it's utilities - god bless the free market, hey - Private Sector rules - Yeah!!

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Anonymous

Anonymous

22/06/2010 9:54 am

That exactly proves it.  BP can create so much profit and business for £50 Bl fine to be a drop i nthe ocean, but social housing, no matter how much public money poured in it (billions overthe years, by the way) can only waste resourcdes in providing CEOs huge salaries and dreadful services to tenants.

It is a strong case to abolish the position of CEOs in social housing altogether.

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Harry Lime

Harry Lime

Posts: 164

22/06/2010 10:40 am

"waste resources"??  Everyone goes on about this and I will re-iterate the point that I keep trotting out.  Show me a CEO of a RSL that is paid "too much" and I will match it for a similar role in a smaller sized private sector firm that pays out far more.  If you're in charge of a company with assets in the many billions (40,000 houses are worth a lot of money) why shouldn't you pay enough to attract the best?  Yes it's a distorted market but so is the UK food retail industry with 3 or 4 "big players"  I daresay I could make a case that managing Tesco's is easy because of their dominant position will people clamour for their CEO to have a capped salary?

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Anonymous

Anonymous

22/06/2010 10:40 am

Yes lets take away CEOs of HAs and lets make all rented housing private.  That way the current £2.7bn per year the private rented sector cost the taxpayer in additional HB would rise to well over £6bn.

Damn id forgotten that HAs save the country an absolute bloody forune each year!

And would HA CEOs make it in the marketplace?  Well what happens to former high ranking public sector employees in the private sector - Yes they earn a bucketload more money dont they!!

Im not an apologist for the pay of HA CEOs - rather im arguing against the naivety and stupidity of firstly the R4 argument and then the following one which said CEOs in the public sector wouldnt 'cut it' in the big bad private sector world.

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Anonymous

Anonymous

22/06/2010 10:52 am

"..CEOs in the public sector wouldnt 'cut it' in the big bad private sector world."

As you claim other are stating stupidities - and by inference clamining that your are the clever one,  can you now prove your cleverness by giving us a  handful of example of social housing CEOs who have gone to cutu ti in the private sector and with what results? 

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