Over the past 5 years US bankers have been paid $2.2 trillion. That’s roughly twice Australia’s GDP. It is an astounding amount that was not invested in productive assets but spent on fairly useless business executives who drove their firms – and the world economy – to the point of collapse.
This makes the rewards to our own corporate dills seem stingy. The executives of Bluescope rewarded themselves with $3 million bonuses after losing $1 billion and sacking 1000 workers. One wonders whether their shamelessness reflects their view that Bluescope might not survive so that whatever is left in the cookie jar should be taken before it entirely empties. (112)
But, Harry, there is at least one Australian who is pulling it in. I have just read that Rupert Murdoch’s annual income from News Corp has increased 47% to $33 million including a $12.5 M bonus. Son James pulled in 17.9M, including a 6M bonus. This is a 73% increase. Not bad for a year in which the company’s reputation has been shredded and its share value has tanked.
Are they about to be ousted by the shareholders?
It could be for a comparable reason the executives of Bluescope are grabbing the loot. The Murdochs might lose control of the News Corp cookie jar.
But in Australia wages of most workers have improved strongly over the past 30 years. That is not the case in the US where all the growth in the economy has gone to an astounding small 0.1% of the workforce according to economist Richard Freeman. Most of this has taken the form of bonuses to business executives.
Hang on, news just in, the scion refused the $6,000,000 bonus.
Shame lives!