If you search online “do corporations have too much power”, results are dominated by Unites States sources. It’s as if the debate hasn’t even started in the UK. Perhaps it should.
As executive compensation continues to increase, more evidence emerges of the link between compensation and risky behaviour that could, in the most extreme cases, lead to the collapse of the firm and why not, the global economy.
And yet some CEOs’ bonuses are being subsidised by public money, especially in the UK where the taxpayer generously tops up salaries that are too low for employees to be able to live on.
The biggest question that is still unanswered after the 2007-2009 financial crisis is: why has growth been so slow? Compared to previous recessions, both in the US and in Europe, the rebound has felt more like an extension of the crisis rather than like a proper recovery, as in previous cases.
Almost two years ago, economist Andrew Smithers warned that US companies themselves were endangering the recovery. Little has changed since then, but public awareness of the problem is increasing, and with it, hopes that a solution is around the corner.