Paul Lee makes a key point we also try to emphasize. Markets do not run on money; they run on trust.
Data from the UK’s High Pay Centre indicate that chief executive pay has increased again, giving rise to the usual headlines about inequality.
More striking, perhaps, than the 11 per cent increase in FTSE 100 bosses’ median pay (a lumpy statistic) is the change in the pay ratio between chief executives and their average worker — up from 128:1 to 145:1.This is far from equal but there is a more fundamental question: is it fair?
In my 19 years of representing investors’ interests when talking to the leaders of major companies, it has struck me that fairness is crucial in a financial and economic system that delivers for society.
Holding business leaders to account on behalf of millions of individual beneficiaries is largely about trying to make business deliver fairly.What do we mean by fairness? It is not equality; rather, it describes a process whose results, which may be unequal, are accepted because the process is believed to be just.