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View Diary: Privatization of the Royal Mail: Can This End Well? (19 comments)

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  •  Some comments from the "opinion" link you (3+ / 0-)
    Recommended by:
    Lily O Lady, magnetics, eztempo

    give, which I found quite interesting, and which contained information I found shocking (the public employee director of the Royal Mail earned over 2 million pounds in one year?  WTF?):

    "Executive pay is one (further) example of how the current model of Anglo-Saxon capitalism has gone completely awry. Of course the shareholder value model is great in theory. But in practice, even shareholders, or should I say, especially shareholders, who are supposed to own the corporation and in whose interests the board and management are supposed to act, are completely f**ked over.

    A example from 2007, pre-crash, will illustrate these insane remuneration schemes: Robert Nardelli, CEO of the huge retail chain Home Depot, was awarded $240 million in salary and bonuses over a six year period during which the stock price of the company remained flat and shareholders became increasingly unhappy with the strategy pursued by management. But they found it difficult to remove Nardelli – because of the way institutional shareholdings were held and the voting rules etc. When he did go eventually, it was with a payout of a further $210m. This kind of lunacy is so plainly wrong, so indefensible, that it is shocking that it can continue.

    We all know as you say that this elite effectively set their own pay and that their claims about great talent is bogus. There is another claim they make which is also bogus. It is that today, they argue, large corporations are increasingly complex and geographically diverse and require the best of the brightest to run them. But that has always been true of multinational organisations. Even the governor of the East India company had to deal with complex issues for his time...."

    "Like most people, my use of the postal service (i.e. the monopoly aspect of it: letters) has practically vanished over the last decade or so, due to email, texts, etc. Yet despite this, like all tax payers, I have to contribute to Crozier’s salary, via various subsidies and dodgy “loans” from the government. This is what makes his “package” a matter of public debate. He is, as you say, essentially presiding over the winding down of a huge public sector liability. Exactly how special does he have to be? We have a right to know....A commenter referred to the East India company – this is hugely relevant to the example of the Royal Mail. Neither are businesses in the modern sense – they are monopolies backed up by government force. This has more in common with anachronistic mercantilism rather than modern capitalism...."

    That's one more thing to add to my long list of small problems. --my son, age 10

    by concernedamerican on Sun Sep 29, 2013 at 08:03:29 AM PDT

    •  Thanks for reading. There is some trenchant (0+ / 0-)

      stuff out there, we can agree.

      The hungry judges soon the sentence sign, And wretches hang, that jurymen may dine.

      by magnetics on Sun Sep 29, 2013 at 12:35:45 PM PDT

      [ Parent ]

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