Sydney Morning Herald, August 6, 2009.
The cycle of excessive reward for private sector executives has been lashed by the body that sets pay for judges and politicians, which says top public servants work just as hard for much less.
The Remuneration Tribunal, which decides the salaries of defence force chiefs, judges, politicians and public servants has weighed into the debate on corporate salaries, claiming increased financial reward does not lead to better performance...
It also takes aim at professional remuneration consultants used by corporate boards.
In making recommendations, these consultants often refer to advice given by other consultants. ‘‘Such ‘self-referencing’ is a recipe for movements in one direction only – upwards – or, even worse, leapfrogging,’’ the tribunal says.
The Prime Minister, Kevin Rudd, has characterised exorbitant pay-packets in the banking sector as a key part of the ‘‘extreme capitalism’’ that led to the financial crisis
http://business.smh.com.au/business/business-fat-cats-lashed-over-pay-20090805-ea4g.htmlBoth a Senate and an independent inquiry are currently taking submissions on executive salaries in all business sectors. It should be noted that CEO pay rates in Australia are about one eight of their US counterpart, including CEOs of wholly owned US subsidiaries.