The Myths, The Realities'Beings a CEO is risky, so they need to be compensated'
Hardly. Only six CEOs left FTSE100 companies in 2009, a turnover rate of 6% which is less than half the national average.
'Big pay packets are linked to business success'
What about bumper pay for the bankers that caused the crisis? Over the past 10 years CEO pay has quadrupled while share prices have fallen.
'Without big pay packets, executives will be lured abroad'
Only one FTSE 100 company has had its chief executive officer poached by a rival in the past five years - and that was by a rival British firm.
'Our high pay is in line with other leading countries'
It is significantly higher than the rest of Europe - it is less than the USA, but its CEO pay is 170% higher than the rest of the world.
'The increase in earnings at the top is in line with inflation'
No. Most salaries have gone up with inflation over the past decade, but the proportion of earnings taken by the top 0.1% rose by 64.4%.
'Big Money is needed to get the best CEOs'
That assumes most are bought in, when 59% of CEOs in the FTSE 100 were already in the company for five or more years.
' Big bonuses mean better results'
Not necessarily. Research suggests performance-related pay works only 50% of the time - and bonus culture didn't stop bankers leading us all to crisis.
Taken from The Independent on Sunday 15 May 2011
