tag:blogger.com,1999:blog-4073991368963140015.post7980971544212171780..comments2023-11-05T12:18:27.222+00:00Comments on Labour And Capital: Pensions blame gameTom Powdrillhttp://www.blogger.com/profile/05511483398745094803noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4073991368963140015.post-14016900999613561882010-01-10T01:56:02.351+00:002010-01-10T01:56:02.351+00:00The failure of company pensions, is down to the fa...The failure of company pensions, is down to the failure of pensions investments. And most pensions are invested in shares in UK companies. <br /><br />So the logic, goes if UK companies do well, then the shares price goes up and so does the value of our pension funds. <br /><br />But we have a serious problem in corportate governance. Many of our top company directors are not very good and only interested in short-term gains. They don't think long term.<br /><br />Just look at what happened at Rover. Sold for £10 and the company directors milked every penny of it. Just look at the banks - how many have been brought to their knees?<br /><br />We reward company directors for failure - there is something wrong here. If the company does badly, then the guy at the top gets fired and receives a handsome golden settlement. <br /><br />There should be major re-think in how we pay company directors. They should receive a basic salary, but the bulk of it should be in shares which should be lucrative. They should be redeemable in 3,5 , 10 and 15 years. This forces company directors to sow seeds to turn into oak trees. If the company goes bust in 3 years, then they loose their lucrative shares.<br /><br />If company directors are only motivated by short term targets they will never build up the business for the future. And our pensions ar for the long terms.<br /><br />Also, company directors pension should be 50% in vested in their down company. Again it ties them down that their company must succeed!Unknownhttps://www.blogger.com/profile/13116266362201719789noreply@blogger.comtag:blogger.com,1999:blog-4073991368963140015.post-28833616646544663492010-01-10T01:40:57.407+00:002010-01-10T01:40:57.407+00:00This comment has been removed by the author.Unknownhttps://www.blogger.com/profile/13116266362201719789noreply@blogger.com