Performance-related pay is a myth to excuse greed

UNEQUAL PAYIt has been reported today that Bob Dudley, chief executive of BP, received a 25% rise in total pay and bonuses last year even though shareholder returns deteriorated and company profits fell back significantly because of the halving of the world price of crude. According to BP’s annual report published yesterday, his overall pay rose from £6.6 millions to £8.25 millions. The report said “Bob Dudley’s remuneration is closely linked to performance(!). The pay he received in 2014 reflects BP’s delivery of strategic targets over the past 3 years”. This is nonsense. BP doesn’t say which strategic targets they had in mind, whether they were picked at the outset or selected now to give the best retrospective impression, how exactly they were measured, etc. Continue reading

Really, Tristram? The “totally convincing” case for performance related pay exposed

Tristram Hunt 1Having giving his support to academies and “parent-led academies” (aka free schools), Labour’s new shadow education secretary Tristram Hunt has now committed the party to another key right-wing goal for education: “performance-related pay” (PRP). He told the BBC Question Time audience: “I’m in favour of performance-related pay. We had a great report come out today by Alan Milburn on social mobility, and the chapters in there on education are totally compelling.”

In a subsequent interview with Andrew Marr, days after his promotion to the Shadow Cabinet, Hunt added “… what teachers want is respect from politicians. … You listen to their views and you take them with you”. It is a safe bet that Hunt did not discuss performance-related pay with teachers before declaring it Labour party policy. A strange way of commanding respect by listening and taking people with you, one might say. Continue reading