For all those who missed the table compiled by Patterson Associates and published in the paper edition of The Evening Standard on 22 February 2012, here it is:
Value added to the company per £1 in chief executive pay, 2006 - 2010:
Source: Patterson Associates
The table shows the relationship between the notion of "the top City talent" and the skills and abilities to make/lose money for the investors/shareholders. No wonder pension funds, saving rates, endowments' returns are what they are. Any surprise?
Value added to the company per £1 in chief executive pay, 2006 - 2010:
| SAB Miller: | £21,950 |
| Reckitt Benckiser: | £11,958 |
| Diageo: | £9,199 |
| Rolls-Royce: | £5,182 |
| Tesco: | £1,028 |
| BAE Systems: | -£558 |
| Legal & General: | -£3,495 |
| Barclays Bank: | -£10,787 |
| Royal Bank of Scotland: | -£34,275 |
The table shows the relationship between the notion of "the top City talent" and the skills and abilities to make/lose money for the investors/shareholders. No wonder pension funds, saving rates, endowments' returns are what they are. Any surprise?
For all those who follow "the City top talents" views on the current financial crisis and their depth of understanding, like Mr John Varley analytical view on this crisis (for example published on this blog) the figures in this table should look as expected.
It is likely that curbing City pay would give it a competitive advantage because now top pay in the City appears to attract top talent, but of the wrong sort.