Pyramid Comment

This journal takes an alternative view on current affairs and other subjects. The approach is likely to be contentious and is arguably speculative. The content of any article is also a reminder of the status of those affairs at that date. All comments have been disabled. Any and all unsolicited or unauthorised links are absolutely disavowed.

Thursday, January 19, 2012

Executive Pay

Executive pay is anathema to most people. Clearly, highly paid executives like each other since they are commonly involved in setting each other's pay (the game). Just about everyone else despises them. They won't and probably don't care since their lock-in to (their own) money is complete. As long as they get their reward, let the company fail. When it (the company) has gone there is always another 'hunt for the head' happening. It is peculiar that such a head hunt would search out the failures to 'head up' another (successful) business to ensure its demise.

The question must be "why are huge bonuses given to reward failure?" Executive pay should (in a logical world - DA) reflect performance. When a business goes 'belly-up' any 'normal' employee identified as being responsible would probably get the sack. CEOs don't get sacked, they get rewarded with an enormous bonus. This could be a definition for the word illogical.

Money in the conventional sense doesn't exist. It's Virtual Money. Business 'leaders' know this and it's a well kept (the worst kept - DA) 'secret'. If the truth actually got out (many wouldn't believe it anyway - DA) there would certainly be problems on a scale that would destroy the prospects of growth . The term growth is a very peculiar one as growth of one element ensures the decline of another. Inflation and unemployment are both elephants in the same room.

Inflation and growth are like a couple married to each other and it would be the messiest of divorces to attempt to separate them. The world economies would collapse overnight. 'Making money' or 'growing value' relies totally on confidence. Company shares reflect a company's worth and this can tumble in a heartbeat if confidence is shaken. While investors' funding (investors have the sole aim of increasing their own worth on the back of another's - the company share value) is critical for success, most probably couldn't give a damn what the company does as long as its share value increases. There is a profit from the investment. It's a very simple (cynical) principle (that has no principles - DA).

The 'secret' remains a 'secret'. But the BIG secret is getting smaller.