How much should Thiam have been paid then as CEO of Prudential? Not asking for an exact number, a ballpark figure will do.
Richard Murphy says:
April 1 2015 at 12:54 pm
A couple of hundred thousand or so
Tell me why he earned more
Not because he could
But the economic justification
And don’t claim market rates. There is no such market
That one set of shareholders poach a successful CEO for a greater amount of money from the first set of shareholders shows that there is no market in the services of CEOs.
He also manages to get terribly, terribly, confused about the outcomes of tournaments. Book writing (Rowling,) Soccer (Messi) and CEOs (Thiam) all share significant features of being tournaments. There’s many people who try to succeed at the three. There’s very few who do and their rewards when they do are very high.
The attrition rate for authors and footballers is of the same order for example. There’s hundreds of thousands who try and only a few hundred earning millions a year. But Messi is apparently exploiting the fan base and Rowling is not. Rowling is an entrepreneur deserving of dividends and Messi is not: despite both taking comparable risks when they sat down to decide upon a career.
And we might well note that Rowling is appropriating a rather larger portion of the total revenue from the economic activity she partakes in than Messi is: there’s no way he’s getting 20% of the total revenue of the club, is there?