Global : Ideas : Bank - The Fat Cat Index: identifying the CEOs who take most

		30 July 2010

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The Fat Cat Index: identifying the CEOs who take most

Score
84%

18 votes, Feasibility 85% Originality 77% Humour 78%

The Problem:
Overpaid chief executives and directors, in comparison to the rest of their employees.

The Social Invention:
This idea would help identify quickly and clearly which company executives take the most from their organisations. It would be called The Fat Cat Index.

Define a measure for each company calculated as the total remuneration package of the top paid executive, divided by the average number of employees working for that organisation during the financial year.

This should highlight those companies where each individual employee contributes unduly large amounts for the benefit of the precious few, and allow investors and potential investors to investigate further where it is out of line with other companies within a particular sector of the market.

Maybe by being so public, the directors would be less able to hide behind the old barrier "the salaries are set by the remuneration committee".

The Author - Andrew Hobbs (anh1965)

Self employed IT consultant & lateral thinker.

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