Executive Pay Addiction

Smokers like to point to the calming effects of smoking, relaxing after long day with a drink and a drag - the satisfying puff after a lovely meal. But they also like to draw attention to the charging effect of smoking, how when driving long journey or fighting jet lag a smoke will help to generate some energy.

Until a friend of mine, a frequent ex smoker, drew my attention to how untenable this position is; I had not realised that my habit was not a useful habit with some risky side effects that will never catch up with me, but an addiction. Of course, with hindsight, it is ludicrous to think that an artificial stimulant can also work as some kind of calming influence. It’s just an addiction.

The first step in dealing with smoking addiction, for me, was to choose to fight it. Of course I had some great incentives, a new family and loving wife, but at the end of the day I had to choose to do it for myself. Part of that process of choosing to fight the addiction meant deconstructing the arguments for smoking. And the first one was, this drug does not solve anything, least of all the effects of stress or tiredness.

Those in our community that deny executive pay is excessive invoke ‘the global market.’ And why not, what could have a nicer ring to it than the market itself, and global one at that. After all, two-thirds of FTSE 100 companies are global operations, for whom the UK is a small part of their operation.  However, these same people also use the global market as the same reason why low wages are very low and high wages are disproportionately high. 

How can one overriding factor drive leaders of our largest organisations to have salaries 40, 50, 60 even 100 times higher than the lowest in their organisations, while simultaneously driving the gap between the two wider?

The same reason 10 million people smoke in the UK – addiction.