Doe's it pay to get it wrong?

  spuds 17:15 23 Nov 2007
Locked

Nearly every day we see in media reports about one failure after another, and how the people 'at the top' involved are really gutted or sincerely upset that it as effected others. Yet the very next day there are reports of massive golden handshakes, bonus's and pension rights plus possible other perks being given to the possible people or person 'at the top' whose decision as brought theses highly noticeable failures.

We have the recent England football saga, when everyone holds their hands on their heads in disbelief and disgust with the possible "My worlds come to an end". Then the next day everything is fine with a £2.5 million farewell gift, and possibly another immediate job offer.

Then we have the Northern Rock chain of events, which is having a massive loan of public money injected into it. Remember this is a commercial company run on commercial business lines, not a public owned enterprise. If the various media reports are correct, then the previous directors had a very good wage, perks and bonus's provided. Again on taking the honourable route of resignation, there as been some very good pay-offs.

Now if this was a lower scale worker who made an error or failure, then it would most likely be a case of "£££-not for you. There's the door".

What's you views?.

  interzone55 17:25 23 Nov 2007

The boss of Northern Rock received neither a bonus nor a pay-off.

If they hadn't received the massive loans of public money they could have gone under - causing losses to account holders, so either way the public have lost out.

As for Steve McLaren, he was on a four year contract, the wisdom of this has been debated elsewhere, this contact has been terminated early so he has been compensated. I'm sure if you lost a fixed term contact job you'd want compensation for breach of contract.

Failure at the top has always been treated better than failure at the bottom

  spuds 18:38 23 Nov 2007

alan14, I think if you do your homework, you will find that Northern Rock paid their directors a bonus before this event.

How about a non-payment clause for failing to do the expected job?.

"Failure at the top has always been treated better than failure at the bottom", but why, we have moved from the Victorian child chimney sweeps and doff your cloth cap era!.

  Forum Editor 19:34 23 Nov 2007

involved in some cases, but what you're talking about are contractual matters. If someone has a four year contract, and the other party to the contract wants to terminate it prematurely there must be a compensation payment - that much is fairly basic contract law.

If the contract contains express terms - targets which must be met in order for the contract terms to be complied with - then there's a slightly different situation, but specific achievement targets aren't always so easy to incorporate into contracts. It's a complex business, and termination payments aren't new - they've been incorporated into contracts for centuries. The huge amounts ensure publicity, and that's why we're all aware of them.

  tried 19:38 23 Nov 2007

Well all we can hope is that the Northern Rock directors dident invest their money in Northern Rock! Im sure they will pay out the millions of tax payers dosh to their investors gosh I made a joke!

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