Monday 24 September 2012

I have an idea.

I have an idea. I know that some would believe that I have "no idea" for most of the time. (shut up at the back)  Maybe its one of my infrequent flash backs to my more lucid moments.

We are all aware of the justifications for executive pay. Where everything is carefully benchmarked. Then there is a remuneration committee that supervises salaries and bonuses. Then there are the outside consultants who advise whether it's in line with industry norms. In other words, the usual set-up that has allowed executive pay to spiral out of control. 

It is impossible to benchmark CART senior offices using industry norms. It would get away from the idea of contrasting and comparing chalk and cheese. There are no direct comparisons to be made as there is no other directly comparable charity.
Comparing individual jobs from one business to another is fraught with difficulty. Could you compare the CEO of CART for instance with a CEO in The Finance Industry or A CEO in the Health Industry. 

As CART does not want to have a formal Membership (who might want to vote or express an opinion at an AGM) which they have already made clear.  Why not look at a system like the one at the Nationwide Building Society. The society sends its members a voting form to approve (or not) the director's remuneration report. It's quite a different ethos connecting and engaging with the members and a refreshing change. 

This is an idea that could be carried over to CART. For instance, if I have an account at the Nationwide then I am able to cast a vote. I have a boat licence which I purchase from CART. On that basis I could be granted a vote. It could be run on the same basis as the election of independent boaters to the CART council. 

The same facilities could be offered to CART employees to vote. What a refreshing change this would bring about. Much more of an incentive to the senior management to perform better year on year. The opportunity to build their remuneration package based on performance and not on comparison with someone in a different industry. Unfavourably compared with someone who may have over performed through dint of hard work. 

After all, what to the CART senior management group have to fear. It's a win - win situation for them. Less criticism from the outside and more recognition for what they actually achieve. 


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