Pay

Ryanair boss’s bonus gets an apt level of anger

19 Sep 2019

Almost half the budget airline’s shareholders voted against a package that could see CEO Michael O’Leary get 99 mln euros over five years. They stand to gain if he hits his targets. But given it looks relatively easy to do so they are right that it’s only barely acceptable.

Uber labor bill risks straying from righteous road

29 Aug 2019

The ride-hailing giant’s home state of California wants gig-economy firms to give workers paid vacation and sick time, following similar cases in Europe. Yet some old-school industries may get carve-outs. That would be a pity. It’s a chance to rethink protections for all earners.

Review: How greedy executives choked off growth

9 Aug 2019

Interest rates are ultra-low and earnings are at record levels, so why has corporate investment slumped? In “Productivity and the Bonus Culture”, economist Andrew Smithers points the finger at soaring executive compensation. His rigorous diagnoses call for some radical cures.

Hadas: Gratuities reach an economic tipping point

31 Jul 2019

Customers like to reward good service. But food delivery service DoorDash’s now-abandoned policy of pocketing tips shows how generosity has become subservient to optimising profit. Fairer wages and clearer prices might work better.

Hadas: U.S. slavery reparations might just work

24 Jul 2019

In terms of race, American society remains stubbornly separate and unequal 155 years after abolition. Much of the economy still works as if racial attitudes had not changed. One way to reduce the black-white social gap is a womb-to-tomb campaign of well-targeted incentives.

Where is StanChart’s chair when he’s most needed?

17 Jul 2019

CEO Bill Winters is under fire for calling shareholders “immature” for criticising his pay. But the bank’s board, led by José Viñals, sets remuneration. Having failed to sell the deal in the first place, the Spanish chairman should be the one deflecting shareholder discontent.

U.S. soccer’s unsporting pay is an own goal

8 Jul 2019

The American women’s team that clinched the World Cup title on Sunday is fighting for equal wages. As with similar battles playing out in the corporate world, arguments about metrics and comparability cloud a simple point: closing the pay gap is good for long-term profit.

Review: The conundrum of no good jobs

5 Jul 2019

Low unemployment in the U.S. and UK hides a grimmer reality, economist David Blanchflower argues in his new book. Weak wage growth and widespread despair have prompted people to turn to populist leaders. He makes a compelling case for why policymakers can still rev up growth.

Smith & Nephew U.S. pay wheeze hides deeper logic

25 Jun 2019

The British artificial-knee maker is considering moving its listing across the Atlantic, the FT reports. American investors’ tolerance for high wages might help keep CEO Namal Nawana happy. S&N’s business, its M&A ambitions and lowly valuation are better reasons for jumping ship.

Gender pay gap deserves GAAP accounting

19 Jun 2019

Alphabet is the latest to oppose a shareholder call for it to report the difference between median male and female pay. Many companies publish data by job categories to deny sexism, but that sidesteps a lack of women at the top. Fuller numbers would help get at the real problem.

Closing diversity gaps involves no mystery

23 May 2019

Many global asset managers think improving diversity compromises returns. Meanwhile JPMorgan persuaded most shareholders that disclosing its gender pay gap was too onerous. These are excuses. The solution is simple: show the gaps, close them, or expect lawmakers to step in.

Deutsche Bank bonus pay is excessive and ill-timed

22 Mar 2019

The German lender has nearly doubled management pay to 56 million euros due to higher variable pay. The group bonus pool shrank but is more than six times 2018 profit. If unions were irked by job cuts that a proposed merger with Commerzbank would bring, this will incense them.

Shell CEO’s bonus problem less size than length

14 Mar 2019

Ben van Beurden’s 20 million euro pay for 2018 is more than double the previous year. Given Shell’s share performance over the last three years, a bumper payout is logical. Yet holding shares for just three years would allow him to cash out before any climate crunch hits Big Oil.

Disney’s CEO pay sequel outperforms the original

4 Mar 2019

It took a shareholder revolt last March, but the board has canned some $13 mln extra a year for Bob Iger after the Fox deal closes. Incentivizing executives for dealmaking is bad practice. Ditching it will mollify investors, even though Iger is still minting a fortune.

Goldman adds extra kevlar to 1MDB rear-padding

4 Feb 2019

The Wall Street firm says it might hold back some of CEO David Solomon’s $23 mln pay if the Malaysian scandal leaves a smear. It had the ability to do that already. The new policy makes clear that clawbacks can be used to avoid added embarrassment as well as inflict punishment.

Transatlantic bank bonus gap is getting wider

21 Jan 2019

American firms boosted investment banking revenue by 3 pct last year; the top line at their European rivals is set to shrink. That will strengthen Wall Street’s hand when competing for staff. Meanwhile, equity traders and M&A advisers should do better than fixed-income peers.

Context makes Santander’s Orcel fail even worse

18 Jan 2019

The Spanish bank expected UBS to honour a portion of its would-be CEO’s deferred pay. But recent executive moves at Deutsche Bank and Barclays saw new hires compensated in full. Andrea Orcel’s acceptance of a cut was a concession – making it all the odder Santander backed out.

Jamie Dimon puts America and himself first

17 Jan 2019

JPMorgan’s CEO said last year he wanted the U.S. tax cuts “shared broadly.” And he followed through, boosting low-paid workers’ wages and opening branches in poorer areas while also growing the bank’s earnings. But taking a $1.5 mln pay hike himself is unnecessary and tin-eared.

JPMorgan bankers win Wall Street pay game

17 Jan 2019

Jamie Dimon’s firm is the only one to increase average compensation for investment bankers and traders in 2018, boosting it more than revenue rose. Jefferies still pays the most, but it’s less generous than it was. Goldman and Morgan Stanley have the mix just right.

City is even less diverse than RBS makes it look

19 Dec 2018

The UK bank’s hire of a female CFO and potentially a female CEO too is unusual. But 50 FTSE-350 companies have no women on their executive boards at all. With firms often restricting them to non-P&L roles like HR, female CEOs will remain depressingly scarce.