CLAMP FAT CATS PAY.

A major UK shareholder Hermes Investment Management, set up in 1983 to manage BT pension scheme and manages funds worth around £34billion, calls for clamp on Fat Cat pay.

The Hermes Investment Management will issue a document with  ground-breaking proposal referring to the chairs of FTSE 350 firms.

It is thought that this is the first time a cap on all pay as well as individuals was called.

Dr Hans-Christoph Hirt, co-head of Hermes stewardship arm EOS said: "There are significant problems with executive remuneration in the UK, including the complexity of packages, a weak link between pay and corporate performance and in a number of cases executive quantum. The public has lost trust about the government of executive pay.

"Now is the time for investors to articulate their expectations and work together with companies to reform executives remuneration ahead of the voting season 2017.

"We want to see simpler packages lower variable pay, higher shareholding requirements and stronger accountability of remuneration committees."

The proposal includes firms to publish the figure their chief executive's pay would not exceed, which would  be discussed with investors.

Legal & General chief executive Nigel Wilson said: "The average pay ration between FTSE100 chief executives and employees had jumped from 47.1 in 1998 to 129.1 last year, but despite growing disparity there is little evidence ratcheting up executive pay leads to better company performance."

It is great that someone of that level admits and points out the unbelievable situation of which everyone is aware of but nobody speaks openly about it leave alone doing something about it.

Although PM May keeps talking about reform but will it come about. After all those £4 and £5billion plus  bonuses for chief executive has to be reflected in consumer prices. It would be a great relief if those sky-high, not-really-earned pay packages would be brought down to earth but will it?

The chief executives have not only drastically increased their remuneration but also multiplied at an incredible rate.

Furthermore, a number of chief executives are employed on several firms and committees which brings another pay packages. No one can effectively work on two or more top positions. It should also be looked into it and laws brought out against it.

FAT CATS £2.7BILLION PAY-OFF

The Government accounts showed that more than 3,000 public bodies including civil service received £2.7billion in golden handshakes.  These reports coming too often and the government is not inclined to stop it.  The only reason it must be their friends.  Chancellor George Osborne forever preaches austerity and demands more cuts to the public.

The total of taxpayers-funded pay-offs during 2011-12 for around 3,500 and came to a total of £100,000.  Furthermore, three quarter of the 108,000 of the workers received severance money even if they left voluntarily.

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The Government makes the taxpayers belief that it saves them billions of pounds in the long run by cutting down staff.  Well let’s hope so.

However, it has to be acknowledged that the government is reducing public sectors and staff should be paid a reasonable sum for being made redundant.  But in the last three years there were too many cases of civil servants getting incredible, unjustifiable huge amount of money and also many of not most of them have gone into other top jobs straight away.  This should have been stopped.

It will also come as a shock when taxpayers read that almost of 3,500 have received a golden handshake in a six figures.  The Government alone set the civil service pay-off terms and it is therefore irresponsible in handling these huge sums over from taxpayers who suffer one of the worst austerities.

A Government spokesman said: “In 2010 the Government reformed the Civil Service Compensation Scheme to lower the cost of reducing workforce and bring in a scheme that is fairer and affordable for the taxpayer. Civil service had been reduced by 15 per cent saving the taxpayers “22billion a year ever since the election.”

This is one side of the coin the other side is that the Government establish an army of consultancies and out-posting contracts to private companies which were run by civil servants. It also does not justify the golden handshakes of an executive with £1 or £2millions especially if they walk into another job.

At the moment Tory MP Rob Wilson demanded an investigation by the police into 7,500 BBC managers and staff worth £360million from 2005 to 2012.

The Government cannot enforce austerity to the ordinary taxpayers and at the same time fill the pockets of  fat cats. However, Tories, when in power, always looked after their own decibels and kicked the ordinary workers. They did in Thatcher’s, Heath’s,  Churchill’s and right down to Peel’s time during Victoria. It is a well known fact. How they always get voted in again and again is a miracle?