Huge payments out of hand

The issue of huge payments to CEOs has finally reached crisis proportions.

The real issue is what to do about it.

That requires political will.

Remember that there is little or no correlation between CEO's compensation and organisational performance.

The "pay peanuts and you get monkeys" justification of high packages is nonsense.

Let's be guided by fairness in relation to the average wage of around $52,000 p.a.

The package of the Pacific Brand CEO is now 35 times that.

There are packages that come to 75 times, even 100 times that.

The spiral is totally out of control.

Clearly it requires Government intervention just like the economy requires that.

There is no sound reason why Governments should not mandate as to remunerations of CEOs and executives.

This could be done best by introducing a ratio between average wage and the maximum base salary package for a CEO.

I suggest that a ratio of 1:10 would be very generous proposition.

That would result in a maximum CEO base salary of $520,000.

All incomes derive from the same economy.

An egalitarian society cannot afford double standards.

Democracy or plutocracy is the choice here.

Klaas Woldring, Pearl Beach