Nationwide chairman Geoffrey Howe has defended his obscene salary with the ludicrous assertion that he and his fellow directors are just like pop stars and footballers.
No one needs to earn the kind of money that many directors earn, and very few people actually deserve such salaries. A comparison with football players and pop stars does not bear scrutiny. A football player can make money doing what very few people can do - win matches against tough opponents. As soon as a player loses the ability to contribute to a winning team, he is out of a job. Pop stars can make money when people buy their records or tickets for their concerts, but as soon as public interest dries up then so does the flow of money.
By contrast, banks and building societies make money by lending. It is not on the whole a difficult job. You either lend to a given client or you do not. As long as you avoid silly decisions, then you can expect to make a lot of money for your shareholders (or members).
Then again, you can expect to make a lot of money for yourself however well you do. When the banks were in meltdown a few years ago, the government bailed them out, but the banksters did not forego their huge salaries. Therein lies another difference. Pop stars and football players are not bailed out with government money when things go wrong for them.
I wish Britain could elect a government which is dedicated to reforming the way banks and mutuals operate. I for one have had enough of greedy fat scumbags.
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