James Moore: How poor-performing execs get away with it
Outlook Which one was worse? Andrew Moss and his One Aviva, Twice the Value campaign, which should have been named One Aviva, Half the Value but introduced yet another bonus scheme for the insurer's executives all the same? Or AstraZeneca's David Brennan whose bonuses sometimes seemed to be paid in inverse proportion to the group's dwindling supply of new drugs? That might be a bit of an exaggeration. But like Mr Moss, he got rich while his shareholders stayed poor.
Yet remarkably few of those shareholders actually voted against either of them when it came to their respective companies' annual meetings (4.6 per cent in Mr Moss's case, 1.6 per cent in Mr Brennan's).
Big fund managers privately say they achieved their aims by agitating privately, which led both men to quit. Why not allow them a dignified exit? Move along, nothing to see here. Trouble is, one might ask why either deserved what in effect amounts to a pat on the back (95 and 98 per cent support) for doing a rotten job.
This sort of thing is what allows executives to get away with poor performance for so long, and allows non-executive directors to sit on their hands while it happens. They know they will never personally be held to account because – as the corporate governance watchdog Pirc has noted – when push comes to shove, the City's silent assassins prefer to keep things quiet.
- 1 Cyclist who knocked down three-year-old girl says his life has been 'destroyed'
- 2 Chelsea victory parade: Chelsea mocked on Twitter as 'tens of fans' pack the streets of London
- 3 US warned by Chinese media to stop meddling or 'war will be inevitable'
- 4 Woman, 21, dies after taking contraceptive pill that 'caused fatal blood clot'
- 5 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
Cyclist who knocked down three-year-old girl says his life has been 'destroyed'
US warned by Chinese media to stop meddling or 'war will be inevitable'
How China's richest man Li Hejun lost $15bn in an hour - and made a fortune
Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
Snoop Dogg on why he doesn't regret displaying misogyny towards women
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
The day that Britain resigned as a global power
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
EU referendum: David Cameron's rules are a 'democratic disgrace', says French-born Scottish politician set to be denied a vote
A nation of inequality: How the UK is failing to feed its most vulnerable people
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...