End Fat Cat Rule

FORMER ICI boss and management guru John Harvey-Jones calls huge fat-cat executive pay “obscene and unnecessary.” But the fat cats ignore this rebuke from a fellow boss – they’re sneering all the way to the bank.

Senior directors of Britain’s top companies got an average 23% rise last year, making them 84% better-paid over the last three years, despite a slump on the stock markets.

The average pay of a chief executive – including bonuses, share options and incentives, is now well over £1.6 million a year.

A Guardian survey shows a record 190 directors of companies in the FTSE-100 were paid over £1 million last year. One director, BHP mining boss Brian Gilbertson, got a gold mine of his own with a total pay deal worth £9.1 million, then had a row with the board and left with a £16 million departure gift.

New City of London guidelines say directors should “take account of shop-floor pay” when giving themselves huge increases. But many ordinary employees are being made redundant through the failings of their system, while average earnings are up just 3% and take home pay is in reality declining (see article below).

Pampered fat cats get huge signing-on fees – James Nicol of Tomkins received nearly £2 million. They then get golden goodbyes like Gilbertson’s when they go.

They get huge pension pots – Sir Richard Sykes of GKN has built up £15 million to help him survive when he retires.

They get share options which could make them rich if their company does well – Matt Barrett of Barclays got well over £11 million worth of Barclays’ shares – he’s not likely to get a stroppy letter from his bank manager.

Fat-cat pay at a time when workers are facing the dole and/or reduced wages is just the clearest sign of an unequal capitalist system which creates terrible poverty in the midst of wealth worldwide.

Join our battle for a socialist alternative to remove society from the rule of fat-cat capitalists and their political defenders and run it to meet people’s needs.