atans1

Err pay peanuts, get best CEO

In Corporate governance, Financial competency on 22/02/2015 at 5:06 am

As you can see from below (via a FT article), the best performing public pension fund paid its CEO US$O,45m (18.66% return). The worst paid its CEO 16.3X more at US$7.4m. Yet the fund returned only 10.9%.

The fund that paid peanuts got a good CEO. The fund that paid serious money got a monkey.

So was our very own Mr Peanuts right to say, ” If you pay peanuts, you will get monkeys for your ministers”?

But the problem with high pay relative to performance is cynicism about the people getting it. Our millionaire ministers should ponder the closing words of an FT article about an annual oil “bash” in London last week:
Even as the champagne flowed during the week … “Our clients invited us to this party and they’ve clearly spent a lot of money on it,” said a marine services company executive at one bash. “But why are they not paying us our $80,000?”

I would add: After a while, one stops believing.

Here’s an interesting quote from a rich Oz “After you have about $5m to $10m, your lifestyle doesn’t really change that much,”says Clive Palmer. He’s juz dropped off the top 50 richest Ozzies.

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  1. Forgot about the CPF CEO??

  2. The pay difference didn’t seem to account for the performance difference

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