Saturday, 7 January 2012

David Cameron to Clamp Down on Company Directors

The greed of UK company directors is to be smashed as the Government strikes back.

PM David Cameron Set to Fight Capitalist Greed
At last the British Prime Minister David Cameron has decided to put an end to the self-serving greed of company directors in the UK. For decades, directors of share-holding companies in the Unites Kingdom, including banks, have helped themselves to top salaries and bonuses, golden handshakes and golden bailouts.
The incomes of company directors have absurdly increased year on year while the larger part of British society has steadily fallen into economic ruin. But this is now set to come to an end. Sky News reports on 07 January 2012 that the Government will support moves to allow the shareholders of companies to have binding votes on how much pay an executive can receive.
At present, shareholder votes on pay deals of company executives are only advisory, and subsequently are ignored by bosses whose major concern is to put their own financial interests first and give themselves large payouts.

Parliament Condemns the Greed of Company Directors
The same company directors who have led the British economy into a state of total economic failure have paid themselves massive rewards for it, taking the money from the shareholding companies they administer, often detracting it from the dividends that are supposed to be paid out to the shareholders.
But, according to Sky News, the Prime Minister David Cameron is “determined to end the merry go round of super-rich bosses rubber stamping each others' payouts and being rewarded for failure.”
The Prime Minister, who was speaking in an interview with The Sunday Telegraph, said: “let's empower the shareholders by having a straight, shareholder vote on top paid packages.”
The bold move comes in the midst of deepening public anger at the shameless attitude of company directors in Britain taking other people's money in the form of personal payouts while leading the economy into collapse and bringing despair on tens of millions of people, who are suffering the effects of an economic crisis. Sky News reports that “all three main party leaders have attacked spiralling pay in recent days as they attempt to tap into voter anger over the issue”.
Sky News goes on to report that “the Deputy Prime Minister Nick Clegg has attacked what he called crony capitalism”, referring to the way in which boardroom executives jointly support each other in establishing absurd and unjustified payouts to themselves at the expense of the shareholding companies.
In the interview, the Prime Minister David Cameron said words to the same effect, stating: “we've got to deal with the merry-go-round where there's too many cases of remuneration committee members sitting on each other's boards, patting each other's backs, and handing out each other's pay rises”.

A Fair Economy for the Future
Mr. Cameron underlined his determination to achieve a fairer, better economy, and a fairer, better society, where people are rewarded for working hard and doing the right thing.
It is significant that this move to fight the root of capitalist greed and economic injustice comes from the elected House of Commons and not from the unelected and privileged House of Lords. And there is no doubt that the masses in Britain will closely follow the new stance of the Government, cheering on Dave and Nick in their latest effort to come to terms with economic reality and openly confront the parallel society of the super-rich and corporate executives.
Not only is the greed of the parallel society becoming the object of parliamentary attention in the House of Commons, but also their very conduct and moral ethics in carrying out their work, for as Dave Cameron said, people should be rewarded for hard work and for doing the right thing.

Written by D. Alexander

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