Tuesday 18 June 2013

A woman scorned

Caroline Mathiesen is a rich divorcee who is upset that her ex-husband, company director Per Mathiesen, is able to pay himself £2m each year from the business he runs.  Apparently she thinks that he should earn less so that she can have more.

I will not comment on this case in detail, but I sincerely believe that far too many company directors in this country earn far too much money without good reason.  I used to own shares, but nowadays I will not own shares.  One reason is that it is so hard to find a company whose directors put the interests of shareholders above their own.

What does a company gain by paying its directors huge salaries?  Certainly not immunity from bankrupcy, that's for sure.  Likewise huge salaries do not grant immunity from either litigation or criminal prosecution.

Why can't there be a law which regulates how much money company directors can earn?  Let me think ... could it be because government ministers enjoy having lunch with rich company directors?

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