James Moore: Bumper boardroom pay is bad for business
Thursday 23 December 2010
Outlook Not all customers are the same, of course. There are customers and there are valued customers. Most corporate executives sit in the latter category. In fact, they're not just valued customers, they are super duper don't lose this guy or you'll lose your job customers. It's because they earn such spectacular amounts of money.
This is one reason why customer service is so abysmally bad in this country. Executives live in a cosseted and slightly unreal world, surrounded by yes men and flunkies who cater for their every need. Many of them pay attention to service standards – particularly those that work in competitive industries where being shoddy loses you sales and profits. But, unless they agree to go on something like Channel 4's Undercover Boss they have little comprehension of what it's like to experience the frustration of their customers.
I remember a conversation with Helen Weir, the head of retail banking at Lloyds, after a results presentation this year. She was waxing lyrical about how Lloyds loves its customers. As evidence she pointed to figures which show that Lloyds is much better at selling multiple products to its customers than rivals. She was briefly rendered speechless when two journalists launched into diatribes which ought to have rapidly disabused her of any fond notion that Lloyds is any good. It's not.
But when you're Helen Weir, or someone like Helen Weir, you probably bank with a private bank where they have batteries of people dedicated to retaining your business. And you fly first-class. And you have the expensive premium service for everything else.
There's a good reason why people think executive pay is far, far too high, and its not the politics of envy, as the business lobby would have you believe. It is because it can very easily make businesses bad. And that's bad for business.
- 1 Benedict Cumberbatch says Hollywood is better for black British actors
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
Rowan Atkinson to sell £10 million McLaren 'supercar' he crashed into a tree and a lamppost
UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
US blames Russia after rocket attacks in Ukraine kill at least 30
Warriors in ancient Iraq suffered Post-Traumatic Stress Disorder more than 3,000 years ago, say researchers
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
British Muslim school children suffering a backlash of abuse following Paris attacks
Islamic history is full of free thinkers - but recent attempts to suppress critical thought are verging on the absurd
iJobs Money & Business
£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...
£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...