Jeremy Warner: The big bucks won’t stop here with chief executive departures
THREE chief executives have resigned after falling out with institutional investors. But talk of a 'shareholder spring’ and an end to ever-rising fat cat pay is fanciful.
'In the last 20 years, the pay of American workers has gone nowhere, while CEOs have increased their own pay by 400 per cent; this is how they’ve done it,” explains Graef Crystal in the foreword to his seminal book, In Search of Excess: The Overcompensation of American Executives.
There follows a brilliantly revealing analysis of the way those at the top of major corporations and banks complicated, obfuscated and corrupted the system to ensure ever-rising and self-reinforcing levels of executive remuneration. But this book wasn’t penned in response to the latest outbreak of jackpot earnings for ruinous performance – it was written more than 20 years ago.