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Well -- -- -- CEO compensation is climbing.
We have an executive -- -- says top management already gets paid too much.
And it's hurting the entire employment market he's not jumping on the bandwagon and say this for years and years Leo Hendry is the managing partner -- -- media partners.
He joins us now Fox Business exclusive in fact when I was researching and found a piece you wrote in 2008.
-- much the same thing you can you talk about how when you were starting out.
You worked with a boss who -- I think about fifteen times -- the average salary wouldn't you salaried worker was getting a bit at the firm that was -- that was about typical.
But now it's -- like 400 times you know for.
JPMorgan at the start of the last century Peter Drucker right at the end of his life.
David -- compelling pieces saying that that's something in the range of 1520 times.
Was an appropriate ratio of the top management to to the average employee.
The United Kingdom France Germany Canada Japan all embrace that and we did.
And and then this this just this -- nominee compensation comes up how why.
Well we lost control at the board level.
You know I think there is a breakdown of support became friends of the of the managers right at the comp committees became complicit in an Enron which was sort of ground zero for just how bad it could yet.
Can you say well how is it possible.
That not only the scandals could -- but that the compensation.
-- track alongside him at any answer was the audit committee the -- committee work.
Overly paid as well an NR say -- your colleagues as we are prepping for the show David did.
You know nobody knows what the right number is so there's no formula -- well today recommendation.
What's common sense I think glory in the in the sense that we had the 400 is that an average number today.
And -- reason it's a -- issued this week is because the shareholders actually it's Citibank's Citigroup.
Said you know may be enough is enough maybe there is too much.
And and people are concerned because.
The did the did CEOs of Citibank is that he's proven himself very able -- it -- it.
And they turned it down but what people don't understand is since he joined the bank in 2007.
And this hasn't been a good period for Citibank BD be frank he's made 53 million dollars.
And then he took another ten million dollars in retention bonus that was -- it had no standards associated with it.
So win is enough enough.
Get -- and what we found is that there was such a legacy.
The court it sort of concurrent responsibility.
To not just the shareholders but to employees to community the nation through the the health of the economy.
And and I and I know that the number isn't 400 times -- I think that's that's the that's the average today and that's excessive but they have they have the question is who decides what the number as I mean I don't want some bureaucrat in Washington deciding that number do you know it should be the women men and and the agencies sedated -- fiduciary agencies -- only securities.
So the advisory is the stock holders themselves and and it's worked well in the United Kingdom David it did there's an advisory.
On the plants they they don't vote on any single individual they look at the plan.
And the first thing we have to do is make compensation.
Really consistent with the performance.
And in what we know for a fact is every time -- CEO misses his targets.
Well the bonus -- reset but that was what stock options weren't supposed to correct and they didn't quite work out that well know from Milton Friedman wrote this piece in 1917 he said you know -- the CEO with the shareholders.
The shareholders as we watched in this tragic market when they -- up and they go down CEO still go down.
-- just don't go down and so there's no real correlation.
And and showed the best thing we can do immediately is an advisory vote by the shareholders on the plans.
Can see that those plans are tied to actual results not not.
But look over your shoulder and change the -- kind of activity okay Leo Hendry thinks it's we -- -- -- kids for not thank you very much.
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