The politics of envy - as epitomised by Thy Nemesis.

Why have you got such a problem with people who have achieved?

I look up to them and admire them.

Equitist wrote on Feb 26^th, 2011 at 5:13pm:


I didn't say I did.

I just have an issue that you seem to have an inherent dislike for people in exec management positions no matter what the company or what they have done.

I find such people to be admired.

I was only reading the story of the new CFO of Ford Motor Co last week in this month's Accounting magazine - he now earns US$7m per year.
He has lived with his family in 6 different countries in his progression up the ladder and put it many hours.
Japan, to South Africa, to Eastern Europe, to the USA - what a tribute to hard work.

I am sure you find this not admirable for reasons of pure envy.

There has been an extraordinary rise in executive salaries in Australia over the past 10 years with a widening gap between what CEOs personally earn and what they choose to pay their employees.

The ACTU’s Executive PayWatch highlights the blatant hypocrisy of big business executives in pushing for industrial relations deregulation that would cut the pay, conditions and rights of Australian workers. 

A tale of greed and inequality
After a short period of restraint in 2008-9, executive pay has resumed the upward trajectory seen in the years leading to the Global Financial Crisis, a period in which the obscene levels of incentives and bonuses for company executives fuelled unsustainable business practices that resulted in the loss of jobs and shareholder wealth.   

The average total remuneration of a chief executive of a top 50 company listed on the Australian Securities Exchange in 2010 is $6.4 million – or almost 100 times that of the average worker.      

Australians are rightly outraged at the excesses of the business community before the Global Financial Crisis. Ridiculously high salaries and unwarranted bonuses contributed to the financial meltdown by encouraging executives to take risks in pursuit of short-term profits.

Millions of working people around the world are now paying the price for this unethical business behaviour through joblessness, higher taxes and reduced public services. Although Australia has been spared the worst of the financial crisis, there is no room for complacency. Much more needs to be done to strengthen our economy to ensure there is no repeat of the GFC and to achieve a more equal and just Australia.

We need stronger curbs on executive salaries and measures to force businesses to look to the long term sustainability of the company and to serve the interests of the whole Australian community, not just their shareholders. We need fairer taxation and an end to the rorts and loopholes benefitting high income earners.   

And we need to strengthen the rights of Australian workers and ensure employees are able to bargain collectively for a decent share of the nation’s wealth.”   

Key facts

    * The average total remuneration of a chief executive of a top 50 company listed on the Australian Securities Exchange in 2010 is $6.4 million. The average CEO’s total pay packet is now worth almost 100 times that of the average worker.
    * Executive pay rose by an average of over $940,000 over the past year - the equivalent of an extra $18,000 a week, while the annual wage for a full-time worker rose by just $3200, or $62 a week.
    * Since 2001, the base pay for executives has risen by 130%, while average weekly earnings have risen by 52%. Inflation over the same period has been 28.6%.
    * Across the economy, profits soared by 27.5% in 2009-10 financial year. Gross operating profits in mining have risen by 60.6%, while wages grew by just 3.8%. Construction profits rose by 55.5%, but wages by just 2.9%. And profits in the information, media and telecommunications sector grew by 10% - five times wages.
    * Company profits as a share of national income are now back to the record levels of 2008, while the wages share is the lowest since 1964.

Imcrook - people are paid their market value.

Remember a CEO is responsible for the whole company - if it fails he fails, if the results are poor, then it is he and the CFO that has to address the shareholder and analysts and take responsibility.

An everyday worker has none of this, he can clock in, clock out and go home.

In Exec management we work around the clock. I am only on the lower tier of the ladder (though I am now officially a Vice President woo hoo) - and I work solidly well into the early hours often - with requests and demands.

It's part and parcel. I get reasonably well paid as a result, but I'm paid my market rate (roughly $230k - $260k).

These guys have 10 times my responsibility and as a result are paid 10 times as much.

I think the system works well in my honest opinion.

After the Henry tax review last year, the government ruled out changes to capital gains tax.

- from the OP

Ahh good! As I stated earlier .. leave things as they are.

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I find Imcrook that the average CEO is paid about 15 times the amount I am (roughly $3m or so in base salary).

They'd have about 15 times the level of responsibility I have.

The market decides salaries. Whilst the rem committees technically do, they have to give a figure of market rate or they don't get the candidate.

I was looking on the market last year and out of 10 jobs I like they all paid within $5k of each other. Why? Because that's my market rate.

The market always decides the salary and that should always be the case.

Why? Because we have nothing better.

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My boss (who isn't even on the Exec Committee) earned $450k (+450k bonus).

You're mad man, middle management earn that - not execs!!

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Ok well I dont agree with the unions.

I hate to tell you mate, but its my position that is real and not yours.
Plus we've capped the unions power so there is little they can do anymore.
(Thank God)