Now the government wants to replace shareholders.
When a company pays too much to a senior manager, that is the decision of the Board who represents the company´s shareholders, who own the company. The owners of the company should have the right to pay their employees high salaries if they wish.
Government ministers have the right to set the pay of managers in government-owned companies but should leave the market to take care of private companies.
Accountability to shareholders yes, government intervention NO!
Onésimo Alvarez-Moro
See article:
As a young executive at Procter & Gamble, Jan Bennink regularly brought home large packets of diapers, poured water over them, then cut them open to check on the absorbency of the material inside.
The workaholic Dutchman later prospered as a top executive at Danone, the French food giant, before moving to a struggling Dutch baby food maker, Numico, and turning that company around.
Though his career reads like a business school case study, Bennink became famous in the Netherlands not for his boardroom success, but for cashing in stock options, performance shares and bonuses worth around €80 million, or $124 million, when Danone snapped up Numico for €12.3 billion last year.
See full Article.
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