Cronies who stain the name of capitalism

By
Daily Mail Comment

Last updated at 12:11 AM on 9th January 2012

Austerity? What austerity? In the boardrooms of Britain’s biggest companies, insulated from the realities confronting the rest of us, the good times just keep rolling on.

Never mind that the great majority of British families face the tightest squeeze on incomes since the 1920s, with millions having to accept real-terms pay cuts.

An independent survey finds that chief executives of 87 of the FTSE 100 firms helped themselves to a 33 per cent rise in pay and perks in 2010-11, taking their average remuneration to £5.1million.

An independent survey finds that chief executives of 87 of the FTSE 100 firms helped themselves to a 33 per cent rise in pay and perks in 2010-11

An independent survey finds that chief executives of 87 of the FTSE 100 firms helped themselves to a 33 per cent rise in pay and perks in 2010-11

The findings follow a separate analysis showing other directors took pay rises of 49 per cent over the year, filling their boots to the tune of £2.7million each.

Isn’t greed on this scale downright offensive to the ordinary employees who are being forced to make sacrifices?

Such is the background to Mr Cameron’s promise to halt the merry-go-round of ‘crony capitalism’ – back-scratching executives on each other’s remuneration committees, awarding each other sums that bear no relation to merit or results.

To his credit, the Prime Minister is deeply wary of direct government intervention in private companies’ pay policy – believing, like this paper, that it should be left to shareholders and the rules of supply and demand.

But as he points out, when boardroom pay has more than quadrupled since the crash of 1998, the free market is failing.

So the Mail welcomes Mr Cameron’s plans to demand full transparency over directors’ perks and to give shareholders greater powers to fix boardroom pay.

Ultimately, however, nothing will change until pension funds and other big investors (some of whose directors are themselves riding the merry-go-round) show far more determination to restore fairness to the market for the top jobs.

Only then will there be any truth in that increasingly hollow mantra: ‘We’re all in this together.’

The Lawrence legacy

The Mail takes enormous pride in the generous words of Neville Lawrence, praising our role in bringing two of his son’s killers to justice last week.

This was ‘campaigning journalism at its best,’ he says. ‘We couldn’t have done it on our own, because our voices would not have been heard.’

Like Mr Lawrence, we believe the media can be a ‘very powerful force for good’, holding the authorities to account when people have nowhere else to turn.

Neville Lawrence thanked the Mail for our campaign to bring his sons murderers to justice

Neville Lawrence thanked the Mail for our campaign to bring his sons murderers to justice

We also share his wish that more hard-working young people from disadvantaged backgrounds should look to journalism as a career – just as his son Stephen aspired to become an architect before his life was so viciously cut short.

So we feel honoured to sponsor two Daily Mail journalism bursaries under the auspices of the Stephen Lawrence Charitable Trust –  linking our name and support to a charity that has done hugely valuable work in helping aspirational youngsters qualify as architects.

Thanks to the dedication of Stephen’s parents, good has already sprung from the evil of a murder that shook the nation. We hope readers who can afford it will join us in keeping his legacy alive.

Blair’s secret millions

Becasue of the secretive structure of his empire, it is impossible to know how Tony Blair has escaped with a tax bill of only £315,000 on a turnover of £12million.

But though his tax-free expenses of almost £8million are unexplained, one thing is abundantly clear.

The former Prime Minister’s money-grubbing exploits, prostituting his experience of public office for private gain, are repugnant to the nation that once put its trust in him.

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