I don’t mind people earning big sums in a competitive private sector company which is thriving. After all, we as consumers can decide whether we want to spend our money with that company, knowing that some of it goes to the high pay of the executves, or not. We have choice.The CEOs of successful companies drive down total costs per unit of output, innovate to create better products and services and offer us good deals.
I do mind people in the public sector “earning” salaries well into six figures when we have no choice, and when their jobs are not comparable to the risk taking revenue seeking jobs in the private sector.If we decline to pay them we go to prison for failure to pay a tax or public sector sector charge.
Today we read in the Sunday Times that so-called Chief Executives of Councils get high pay in part because a company wholly controlled by the Society of Local Authority Chief Executives and Senior Managers sells advice on how much to pay to Councils! Apparently Chief Executive pay in Councils has risen by a stunning 34% in just 4 years, compared to 16% in the private sector.
I have written before about how so called Chief Executives in Councils are not CEOs in the private sector sense. They have no responsibility for winning revenue, the difficult task most private sector CEOs have to concentrate on, and they make a very poor hash in most cases of controlling costs and raising efficiency, preferring instead to recommend Council tax rises every year. They have not heard of the need for cost down which has dominated private industry for the last decade, because unlike the private sector there are no Chinese competitors to Councils. No wonder many of us are fed up with the high salaries of Council CEOs when they serve us so badly and just push up the Council Tax remorselessly.