The PalArse of Westminster


Exposing the hypocrisy, greed and incompetence of our "respected" elected political "elite".

Friday, 6 April 2012

Hypocritcal Gobshites

It is not just politicians who are prone to double standards and hypocrisy, but also those who feed off politics; ie the media.

The Mirror is foaming at the mouth over the income of Boris Johnson (he, Ken Leninspart and the Liberal candidate have published their tax returns as part of the contest to be London Mayor).

The Mirror shouts:

How did London mayor Boris Johnson find the time to earn £900,000 on the side?

The staggering sum, which he has described as “chicken feed”, comes on top of his lavish £143,911 taxpayer-funded salary"

This faux "outrage" is really rather "odd" given the pay that the Trinity Mirror's (owner of The Daily Mirror) CEO Sly Bailey actually receives:
"The pay package handed out to Trinity Mirror (LSE: TNI) boss Sly Bailey has had shareholders up in arms of late, and it's easy to see why.

With executive pay becoming increasingly disconnected from the money they actually earn for their employers (that is, their shareholders), disaffection is spreading amongst the ranks of everyday investors, and their voices are becoming increasingly harder to ignore in the country's boardrooms.
In this case, big investors are airing their displeasure too, after chief executive Ms Bailey was paid a total of £1.3m in cash, shares and pension contributions in 2011, despite Trinity Mirror having only last month reported a 40% fall in pre-tax profits, capping a dismal few years of falling profits, suspended dividends, and worrying levels of debt.

Collapsing value

The share price has collapsed too, falling from a 2009 peak of 192p to just 37p today, meaning that Ms Bailey has presided over a slashing of the company's capitalization. When she took over the top job in 2003, Trinity Mirror was valued at £1.1bn -- today it is worth just £97m.
The company's pension fund is suffering too, as the company has had to pursue a deal with its trustees to pare back its contributions in order to pay its dues to some of its creditors.
To answer some of the criticisms, the board of directors has decided to halve the value of any future cash bonuses paid to Ms Bailey, reducing it from a maximum of 110% of her basic salary to 55%.

Investors not calmed

But the move looks unlikely to stem the unrest, as they appear unwilling to budge on the overall levels of the boss's pay package, with share-based incentives boosted to compensate for any potential cash loss.
The board's actions appear to be at least partly aimed at avoiding a shareholder revolt at its upcoming AGM in May -- last year 11% voted against the CEO's pay deal, and a higher level of protest is expected this year.
But will it succeed in heading off the madding crowds? Major investors in Trinity Mirror include Schroders, Aviva, Standard Life, Royal London and Legal & General -- we'll find out next month whether they have the courage to press for shareholders' rights."
Maybe The Mirror hasn't been told what their CEO receives, or maybe The Mirror is simply being hypocritical?

No comments:

Post a Comment