Mutuals really are different, aren’t they?

The embattled Co-operative Group, still reeling from a banking scandal and preparing to lay off up to 5,000 employees, faces a new storm over plans to pay its chief executive more than £3.5m in his first year in the job, while massively boosting the salaries and bonuses of other senior staff.

Most ethical.
Or, alternatively, proof that you’ve got to pay to get people who know what they’re doing.

6 thoughts on “Mutuals really are different, aren’t they?”

  1. I really don’t think this is justified. Both the Group and the bank are in deep, deep doodoo, and the Group is looking at deconglomeratisation to salvage what little it can. It looks like a management stitch-up to me.

  2. Knowing a bit about the internal workings of the Co-op, the prospect of them finding a decent set of managers even with this sort of pay is bleak.

  3. Or alternatively proof of a labour shortage in the managing banky things sector. Jobs are a cost, and all that.

  4. So another story illustrating the senior-management class-capture of much of the economy. It isn’t even run for the actual capitalists any more.

    Clearly running the bureaucracy for the sake of the bureaucrats is not confined to the public sector.

    Not bad at all if you can earn more in one year – even possibly the only year your company has before ending up before the insolvency courts – than most people would in a lifetime.

    I would buy the free-market setting wages argument if it was a free market, rather than the same cartel moving from one failure to the next and sitting on each others’ boards as non-execs. The free market works best (in the interest of consumers) when you have suppliers trying to charge as much as possible for as little possible work and customers trying to get the most work for as little money as possible and both sides acknowledge the fact. The manager here being one of the shareholders’ most expensive suppliers.

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