I had forgotten the mad EU-inserted rule that City bonuses could not exceed 200% of basic wages. Anyway, when this originally came out, the Labour Party cheered the drafters to the rafters. It argued (or claimed if you like) that it was the bankers that took Britain bust in 2008 through their “reckless” lending programmes. It is true that they did lend recklessly but the principal cause of this conduct was the feckless conduct of Gordon Brown.
Anyway, Starmer and Reeves have now declared that they will not impose this 200% limit since they are set upon yabbering to their target market, Britain’s floating voters, by offering fresh wheezes. They have circa nine months ahead to the General Election. God help us.
Musk’s $56 billion bonus at Tesla has been described by a US judge as illegal and to be reversed. She argued that such a grotesque sum, awarded by Tesla in 2018, was not justified since the NEDs on the executive remuneration committee did not satisfactorily ask themselves and then answer the question: Is such a bonus commercially justified? Funnily enough Musk is entitled to ask for such a bonus since he did not appoint the relevant NEDs on the remuneration committee. That promotion was decided by the shareholders.
We have much the same state of affairs right now in countless private companies in the UK. In example after example, directors of these companies, since they control these companies, reckon that they can help themselves as they will. Which they cannot. There should be a feast of litigation awaiting these ignoramuses and chancers. I would be delighted to point complainants in the right direction.