The days of idolizing the leader of big business are probably over – Business

After two years of a health crisis, and while we are suffering the economic consequences of the war in Ukraine and inflation is at its highest point in 40 years, the wage gap is arousing the irritation of the population.

It is well known that in times of crisis, the feeling of inequality is exacerbated. This is what multinational bosses are rediscovering. In France, even the President of the Republic intervened in the debate on the salary of Carlos Tavares, the head of the Stellantis automobile group, the new Peugeot-Citroën group. It is true that we were in the middle of the campaign for the second round of the presidential election, but Emmanuel Macron, despite being economically liberal, declared that the salary package planned for the CEO of Stellantis was “shocking and excessive”. It is true that taking into account all his bonuses, stock options and other variable compensation, the total compensation of this CEO would reach …. 66 million euros for the year 2021. Even if this CEO is undoubtedly one of the best heads of the automotive sector and who straightened out this group with enormous talent, such a figure does not pass in France, country of freedom, fraternity and above all equality. But even in the United States, some salaries of managers of large companies no longer pass. Not just with the media, the public or politicians. No, with shareholders.

In recent days, shareholders have voted against compensation for CEOs as famous and brilliant as the CEOs of processor-maker Intel or the CEO of JP Morgan, a Wall Street star. For the head of JP Morgan, it’s a $52 million bonus that was turned down and for the Intel boss, it’s a total compensation of $179 million that was turned down. Attention, the opinion of the shareholders is merely advisory and the company’s management may override this vote, but it indicates that mentalities are changing. For completeness, we must also admit that JP Morgan and Intel shareholders voted against it, because the shares of these two companies have also been down since the beginning of the year.

In Belgium, the debate does not take place, because the highest paid leaders earn an average of 3 million euros. Obviously not bad, but we are far from the stratospheric pay for Americans. But the pressure is also there. The period when we idolized a leader of a large company is probably long gone, because, as a wise observer said, value creation in a company comes mainly from the 10,000, 20,000 or 50,000 employees who get up every morning to go to work and billions of euros of capital invested by the very shareholders who are at risk.” That’s why someone like Elon Musk doesn’t cause any arguments about his salary, when he’s the richest man in the world. His money he owes himself, to his genius ideas and the fact that he risked his own money and started from scratch with no help from anyone. The difference between a salaried leader and a leader who founded his own company.

It is well known that in times of crisis, the feeling of inequality is exacerbated. This is what multinational bosses are rediscovering. In France, even the President of the Republic intervened in the debate on the salary of Carlos Tavares, the head of the Stellantis automobile group, the new Peugeot-Citroën group. It is true that we were in the middle of the campaign for the second round of the presidential election, but Emmanuel Macron, despite being economically liberal, declared that the salary package planned for the CEO of Stellantis was “shocking and excessive”. It is true that taking into account all his bonuses, stock options and other variable compensation, the total compensation of this CEO would reach …. 66 million euros for the year 2021. Even if this CEO is undoubtedly one of the best heads of the automotive sector and who straightened out this group with enormous talent, such a figure does not pass in France, country of freedom, fraternity and above all equality. But even in the United States, some salaries of managers of large companies no longer pass. Not just with the media, the public or politicians. No, with shareholders. Over the past few days, in quick succession, shareholders have voted against compensation for CEOs as famous and brilliant as the CEOs of Intel, the processor maker or the CEO of Wall Street star bank JP Morgan. For the head of JP Morgan, it’s a $52 million bonus that was turned down and for the Intel boss, it’s a total compensation of $179 million that was turned down. Attention, the opinion of the shareholders is merely advisory and the company’s management may override this vote, but it indicates that mentalities are changing. To top it off, we also have to admit that the shareholders of JP Morgan and Intel voted against it, because the shares of these two companies have also fallen since the beginning of the year. In Belgium, the debate has no place, because the best-paid managers earn an average of €3 million. Obviously not bad, but we are far from the stratospheric pay for Americans. But the pressure is also there. The period when we idolized a leader of a large company is probably long gone, because, as a wise observer said, value creation in a company comes mainly from the 10,000, 20,000 or 50,000 employees who get up every morning to go to work and billions of euros of capital invested by the very shareholders who are at risk.” That’s why someone like Elon Musk doesn’t cause any arguments about his salary, when he’s the richest man in the world. His money he owes himself, to his genius ideas and the fact that he risked his own money and started from scratch with no help from anyone. The difference between a salaried leader and a leader who founded his own company.

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