The Price Of Failure?

I suspect that most of you were brought up, like me, to believe that failure in a job leads to the sack.  That still holds true for most of us, but not if you are a director of a UK bank.  Just look at the 2007 salary and bonus packages of the HBOS board.

The price of failure to Andy Hornsby? £2million in Lloyds TSB shares and a job in the merged bank.

You can get the full details by following the link to Business Week's analysis of each directors income for 2007.

Andy Hornby CEO £1,643,000

http://investing.businessweek.com/research/stocks/people/person.asp?personId=8132322&symbol=HBOS.L

Peter Cummings Chief Exec of Corporate £2,400,000

http://investing.businessweek.com/research/stocks/people/person.asp?personId=22929462&symbol=HBOS.L

Colin Matthew CEO of Strategy £1,045,000

http://investing.businessweek.com/research/stocks/people/person.asp?personId=8132328&symbol=HBOS.L

Ms. Jo Dawson Chief Executive of Retail Distribution £982,000

http://investing.businessweek.com/research/stocks/people/person.asp?personId=22335439&symbol=HBOS.L

Lord Dennis Stevenson £708,000

http://investing.businessweek.com/research/stocks/people/person.asp?personId=602375&symbol=HBOS.L

If you really want to put these obscene income packages in perspective compare them to;

Senior Consultant Surgeon approximately £160,000 a year

Firefighter approximately £32,000 a year

Army Private £16,000 to £28,000

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Comments

[Manolo]

The initial employment remuneration packages for these failures is difficult to argue against, they are to be paid at the level of expectation of them bringing their perceived and particular skills to the company. However the concept of "reward for failure" is wholly unacceptable. In the case of HBOS we have the very real possibility of thousands loosing their jobs, that is their income to support their families, shareholder's capital at risk, investors being short changed and poor deals for borrowers, whilst the greedy and incompetant Hornby sails by with a completely unjustified reward for ruining the company and the lives of others associated with it. Has this man no self respect and honour or is his greed to be all that concerns him?