Telecom boss Paul Reynolds gets paid 50 times the money his 'average employee' receives.
Paul must be working very hard indeed. 50 times as hard it seems. Maybe 50 times as long - Mr Reynold's day may extend into some sort of time-warp where he labours long after his average workers have fallen asleep. Perhaps he works at 50 times the pace of his lesser employees? Like Edward Scissorhands, tools flashing at a speed we mere mortals cannot quite detect.
Mr Reynolds is certainly remarkable for his output, if we are to link reward to application.
I wonder if his average employees pay 1/50th of the tax Mr Reynolds pays. I expect so, though a loaf of bread will cost the same no matter where you perch on the ladder.
Some people say that the greater pay inequality that has been developing here in New Zealand is leading to resentment and a potential for rioting in the streets.
An overly wide disparity in monetary reward for services rendered in itself doesn't seem to be enough to draw people out into the streets, though it might have them muttering about going there. I only hope there are no other glaring and growing inequalities here in our fair land. It's the combination of injustices that seems to fire-up those who find that the gap is so wide as to seem obscene and actionable.
Saturday, August 20, 2011
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12 comments:
Certainly seems to be the smell of resentment here.
Not from me Shane - perhaps your computer's overheating.
I subscribe to the proposal that wide discrepancies of wealth and privileged in society create instability and increase the chances of unrest.
You raise a very interesting point Robert, but I disagree about the feelings of unrest, I don't think your average Kiwi quite 'gets it' just yet.
I don't think a CEO getting a bit more is wrong in itself, but 50 times more?, that reeks of excess and a hideous emerging upper class.
I mean, what the hell does he do to earn that sort of money? what sort of hourly rate would this equate to?
Is this why Kiwis pay way more for cell phones and other telecommunications than the rest of the world?
In NZ we just seem to sit here and let this stuff happen, well Pike river is our lesson, there is much to learn from it, but will we?
Pike River was a prophetic warning to this country.
Stock market looks a little fragile this weekend Shunda.
I'mageddin a little antsy about things!
Not really, just playing with words. Mr Key assures us all that everything's coming up roses here in Nuzeelan and we mustn't envy the rich 'cause they'll fly away, taking their wealth with them.
Robert,
You can do better than your last comment above.
Fact: NZ is part of a rabidly globalizing economy
Fact: This is causing massive upheavals in manufacturing, wages, expectations and in some cases social structure across the world
Fact: There are internationally benchmarked pay rates for senior executives of major companies
Fact: If you don't pay these rates you won't attract top notch candids, or lose the ones you have
Fact: NZ Executive pay rates are at the lower end of the scale compared with Australian, US, UK rates
Fact: Increasing executive compensation isn't going to change any time soon, in fact it is going to get worse - bigger gaps, for the simple reason of supply and demand. There is a global scramble for good executive talent, and a shortage of supply
Let us just move on from Senior Executives and consider doctors, dentists, engineers as 3 professions where there are global shortages. Noticed they are getting harder to find in NZ. Noticed the price is going up. If you think it is bad now, give it another 10 years. Same reason - global shortages, and global bidding war for talent.
It will be noticed particularly badly in provincial NZ, which will struggle to attract, retain and pay for necessary talent.
One of the problems of spending 30 years training lots of accountants, lawyers, planners, arts graduates etc and not enough science, engineers, doctors and dentists is sooner or later you start running out.
That is about now.
Be happy in the knowledge an increasing amount of your dwindling in real terms pension (when you retire) will go to pay for these types of services.
Cheers
Ross
*rapidly globalizing
Typos , Arggh
Ross
"You can do better than your last comment above."
Course I can Ross. I was just having fun with Shunda - it's okay you know.
Fact: people who use 'fact' in a staccato fashion sound pedantic :-) but that aside...
You have entirely missed the point of my post and the discussion that's being had throughout the country (perhaps those circles are closed to you). I'm not quibbling over the amount Mr Reynolds is being paid or the details of how that sum is arrived at. I'm comparing levels of income - his and his employees. Rather than repeat my assertion, I'll direct you back to the post, should you care to discover what it is I'm saying, rather than what it is you want to tell me.
Your points are quite valid (Fact, as you say) but a little irrelevant in terms of my assertion.
"Fact: NZ Executive pay rates are at the lower end of the scale compared with Australian, US, UK rates"
Now what have I been seeing lately about satisfaction levels in those countries...two of them anyway. London's burning? Wouldn't want to be a job seeker in the United States of America just now either..Australia must have something good going on there, so many (record numbers in fact) New Zealanders are fleeing Key's NZ for there and before you say 'the mining', it's interesting to note that the favoured destinations are areas where mining isn't a factor.
But 'rabidly' really is rather delightful Ross. I'll tuck that one away for posterity.
What Ross fails to mention is that these "facts" are simply "facts" of a completely unsustainable situation - both economically and socially.
We have tangible evidence of the destructive nature of this economic system, yet still the fingers are in the ears and excuses just get more creative.
They will keep spouting this crap even when the ship is 2 thirds beneath the waves, (it's about one third down at present)
Barking out "we're still floating" is hardly reassuring in such circumstances, but that is exactly what is going on.
So you are all advocating equality? Is that what I am reading?
Shunda and Robert, what the head of Telecom gets paid is none of our business, it's between the shareholders and the CEO. What individual employees of Telecom get paid is similarly none of our business, it's between them and the company.
The disparity in pay is similarly irrelevant and purely an invention of convenience. What is more relevant is what is the return of a particular job for the company. That's what the employee needs to be concerned about. If they are not happy in the role the employee needs to either retrain for a new role or find a new employer in the same role. no one is forcing them to work in that role for what is the going rate.
It reminds me of an news report on State radio a while back. The unions were complaining about Nat/Act aspirations of 'catching up with Aus'. The very next item was the corrections union complaining that they were losing qualified staff because Western Australian prisons were paying 30% more.
If your post is to be taken at face value are you suggesting that 'something should be done' (tm) about the pay gap between WA and NZ?
Paranormal
Paranormal - of course, in a private company you are spot on - CEO remuneration is the business of the board only.
But lets get real, theres nothing gummint can't 'fix', and has a magnificent track record of doing so.
And thats gummint of any hue: red, red, pink, green (red), red or blue (red).
And they 'fix' these things because we allow them to.
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