Interesting to read this lament from someone who has to much
to be grateful for this "narrow british way of life". Thanks to the
"narrow" circle of people who seem to be in control of so much of the
City he sailed comfortably from one post to the next.
When he extols the
positive (in his "narrow" view) aspects of the business enviroment in
the United States he conveniently forgets to mention that a separation of CEO
and Chairman is highly unusual over there. And rightly so, as the facts clearly
demonstrate that a separation has virtually no benefit and if anything is
detrimental. If business performs markedly better in the USA it clearly speaks against this (expensive) separation.
Du
Plessis clearly thinks that the sky is the limit for executive pay - again
assuming that only high pay for the C-Suite will lead to strong economies when
that is not supported by the facts. The USA may look well positioned as the
nation with the highest per-capita income (apart from minnows like Luxembourg,
Monaco etc) but can one assume that extravagant levels of executive pay are the
principal - or necessary - cause of this?
One of the people rankings so popular with the press placed du
Plessis as the 10th most powerful person in UK business (TheTimes 2006 Top 100) But does he
enjoy any legitimacy? Who gives him this "power"? the same narrow
circles that control government, regulators and major firms!
In the latter case
it is the financial intermediaries - Pension Funds, Mutual Funds, Insurance
companies and Private Banks - that vote "their" shares in favour of
high pay. Like du Plessis they have no explicit mandate on how to cast
their votes from the ultimate shareholders - the great unwashed public. Proxy
Advisors may look like they take an objective view they are also beholden to
these Intermediaries who pay substantial (secret) fees to them.
(10 May 2023)
Narrow British way of life’ is holding back the City (PayWall)
