Wayne Rooney is more deserving of his salary than any fund manager, city trader or CEO, according to a new book by management expert David Bolchover.
Pay Check: are top earners really worth it? argues that, unlike top footballers, most fund managers do not possess any special ‘talent’ and cannot justify the salaries they are paid.
Published against current antipathy towards City bonuses, the book claims the huge pay packets enjoyed by leading City figures cannot be defended.
The Western market has become particularly skewed. The past 30 years have seen the average US CEO’s salary spiral from 42 times the average blue collar worker’s pay to 531 times, with little to justify that rise.
In the 15 years immediately before the company’s collapse, Lehman Brothers CEO Richard Fuld took home an average annual salary of over US$30m.
In China however, during 2008, the head of the world’s largest bank was paid less than US$250,000.
Bolchover also claims merit has little to do with who gets appointed to senior roles. In 2008, only 15% of Fortune 500 company directors were female, while a disproportionate number were white men aged between 45 and 65 and over 6’ 2”.
And companies do not cast their nets particularly wide in search of talent - in 2007 more than two thirds of newly named CEOs in the world’s 500 largest companies were internal appointments.
As a final rebuttal to high salaries and bonus culture, Pay Check argues money is not even among the top ten motivating factors in the workplace.
Do you think footballers should be paid more than fund managers and City figures? Vote here.
Or read Lawrence Gosling's blog on the subject here.
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