“Fake News” re pay and performance bonuses for top managers
16th October 2019
“Fake News” from Panuku and other Auckland City Council CCOs Board Chairs re pay and performance bonuses for top managers
Despite comments from Auckland City Council CCOs Board Chairs re pay and performance bonuses for top managers—Herald Newspaper Tuesday Oct 15th--there is very little evidence that says high pay and bonuses improve the performance of a company. Most evidence in this field says they do not. So these statements are simply fake news to encourage senior managers and Boards to “scratch each other’s backs” and so “jack up” their remuneration.
The argument that high pay is necessary to attract top people is also very fraught. Again the research does not support this. Also this argument implies that no one in the company is right for the top job and this speaks volumes for the professional development programmes for that company and earlier employment activity. Try the recent history of Fontera and Fletchers.
Phil Goff is right to criticize the actions of Boards of the Auckland City Council’s CCO’s Boards to increase pay and bonuses to their top managers particularly when many of them are not even paying the “living wage” or insisting that their contractors pay at least the “living wage”. This certainly smacks of greed at the top and a lack of concern for staff at the bottom of these organizations.