A glance at the wealth of some of the signatories makes it hard to believe they care about ordinary people
How much weight the public attach to the letter by big business leaders supporting Conservative economic policy depends on whether people think the business leaders in question are motivated by altruism or self-interest.
A quick glance at the incredible wealth of some of the signatories, and the pay policies of their companies, makes it very difficult to believe they are concerned about the lives of ordinary people.
Pay details of selected FTSE 100 CEOs who signed the letter, and are compelled to disclose their pay in their companies’ annual reports, are as follows:
- Prudential CEO Tidjane Thiam was paid £11.8 million in 2014, up from a mere £8.7 million in 2013. In 2010, he struggled by on just £5.3 million, so people might not find it surprising that he thinks things have got better under the Coalition
- Andy Harrison, the CEO of Whitbread, which owns the Costa Coffee chain amongst other restaurant brands, was paid £6.3 million, over 400 times as much as his average employee. Again, CEO pay at Whitbread has increased from just £2.6 million in 2010
- George Weston, the chief executive of Primark owners Associated British Foods got a £5 million incentive payment last year, on top of a salary of around £1 million plus various other bonuses. His total pay added up to over £7 million, roughly 500 times as much as his average employee. Primark has been criticised for its refusal to pay ordinary workers the living wage
- Despite falling oil prices, BP could still afford to pay Bob Dudley around £9.4 million last year, up from about £8.8 million in 2013, though Aidan Heavey of Tullow Oil wasn’t so lucky – his company’s plummeting share price reduced his pay to just £2.4 million, compared to £2.8 million the previous year.
- In his final full year at Diageo, Paul Walsh was paid £15.6 million. Mr Walsh has previously argued that higher taxes on the rich make it harder for the UK to attract and retain top talent. Cynics might wonder if there was anyone in particular he had in mind.
These pay packages do not necessarily invalidate the opinions of the CEOs (though we should be wary of crediting them with the wisdom of Solomon) or have any bearing on whether they are right or wrong about Labour and Tory economic policies.
But such vulgar sums of money do make it easier for critics to argue that the letter’s authors are a bunch of self-serving racketeers concerned only with preserving an economic system that facilitates their own enrichment, rather than public-spirited entrepreneurs who genuinely want what’s best for the country.
Many sensible businesspeople have argued that the culture of executive greed – and the public contempt that it engenders – threatens the long-term sustainability of a capitalist system. The damage that such colossal pay packages do to the credibility of the authors of this letter is a very good case in point.
Luke Hildyard is a contributing editor at Left Foot Forward. Follow him on Twitter
Leave a Reply