Change the Ratio

06 Feb 2020 10:43 PM | John Heap (Administrator)

I saw recently that Mark Zuckerberg had had millions wiped off his ‘fortune’ by a small dip in Facebook’s stock value.


Laving aside the morality of the vast fortunes of these tech billionaires, I wonder whether  one can create a truly engaged workforce when the leader of the organisation ‘earns’ so much more than the rest of the ‘team’.


“We are all in this together’ cannot really apply - there may be work teams carrying out key processes but I think it unlikely that there is one cohesive organisational team.


People often talk about the difference (in attitudes and culture) between the private and public sectors …. but I think there is much more difference between small and large organisations. ‘Organisation’ causes changes in relationships … and this is exacerbated by huge differences in earnings levels.


Of course, perhaps my attitude is the result of envy - but I don’t think so, Perhaps it is a UK perspective - possibly.


I am not sure whether one could set a limit on the earnings multiple of the leader compared to the lowest paid but I believe it should be lower than it is in many firms.


What worries me on a practical level is the degree to which senior executive’s strive for short term performance to improve their annual bonus, perhaps at the cost of poorer longer-term performance. 



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