Wednesday, June 13, 2012

The Value Proposition

Sir Martin Sorrell has built the biggest company in its sector, a powerhouse that generates huge amounts of money for shareholders. He is, by all reports (I have worked for him twice), a difficult employer, and he was vacuous enough to move his company's domicile to Ireland a couple of years ago.

But a seven million pound bonus seems like a pittance compared to what is paid to the employees of loss making football companies in the UK, much of whose income, ironically, comes from Mr Sorrell's companies. Even banks would balk at paying the vast majority of their loss making income to their staff.

Bad management should not be rewarded, but good management should. Making billions for shareholders seems quite an achievement. Kicking a ball around a field in front of tens of thousands bawling fans is not.