I found it interesting that Abigail Disney, great-niece of Walt, found time to call out a pay award of $65.6m. The recipient of the award is Disney’s boss, Bob Iger.
On Tuesday, Abigail Disney, granddaughter of Roy Disney, called out the “naked indecency” of the $65 million in compensation that goes to Disney’s chief executive, Bob Iger. That figure, she noted, is “1,424 times the median pay of a Disney worker.” https://t.co/Ofj7ZbXVrL
To put that gap in context, in 1978, the average CEO made about 30 times a typical worker’s salary. Since 1978, CEO pay has grown by 937 percent, while the pay of an average worker grew just 11.2 percent
Above all, she’s right.
Balancing CEO pay
Chief executive pay, both in the UK and in the US, has become divorced from any balance between risk and reward. For example, take Walt Disney. An artistic and business genius, he built an entertainment empire from scratch. Also, he stood to lose everything if it failed. Now contrast this against Iger. At the most basic level, Iger is an employee whose great rewards were never balanced by personal risk.
When he and other CEOs get obscene windfalls, it makes capitalism stink. It plays into the hands of people such as our shadow chancellor, John McDonnell. McDonnell plans to expropriate ordinary shareholders in big companies.
Firms who fail to exercise proper judgement over bosses’ pay should beware. The resulting outrage and disillusion will cause the public to judge them. And the result likely won’t be to their advantage.