BBC Salaries – The ‘Market Rate’ Argument Is Again Deployed To Defend Greed and Discrimination.

The grotesque salaries paid to BBC presenters including  more than £2.2m to Chris Evans who flopped as a Top Gear presenter (in an echo of banker-like huge rewards for failure) and Gary Lineker at over £1.75m has focussed attention on what is fair reward in an age of austerity.  The eye-catching issue is the gender pay gap which has, rightly, prompted a public outcry and a legal case. But I want to consider a broader aspect of this issue which necessarily impacts the gender inequality and illustrates a number of problems with our broken socio-economic model.

I want to focus on a tired old excuse that has been trotted out once again.  This time the culprit was Today presenter John Humphrys.  Now, to be fair to Mr Humphrys, he was prepared to be interviewed about the salary scandal, unlike some other presenters who mumbled incoherently as they pushed past journalists. Nevertheless the answer was depressingly familiar. ‘Its the market rate’! He said:

I cant explain it but I’ve been with the BBC a long time and its gone up and up and up. I’ve no idea whether I am worth it. However we operate in a market place and I think its difficult for the BBC, Society sets these rules.

But we must ask what is the market in this case?  White male radio presenters able to get up early and ask ill-informed and sometimes ill-judged questions (I heard the Konta interview)? The BBC must remember that it is entering the ‘market’ on our behalf while at the same time itself distorting the market by doing so. Moreover, who defines what ‘the market’ is and what constitutes good value in this market. Would it be white middle-class men?

The real problem is that Humphrys then goes on to contadict this ‘market rate’ defence by saying that, aside from two occasions when they actually cut his salary (so goodness knows what is was before!), the BBC have been simply pushing up his salary since he joined 50 years ago.  Start with £2k and after a while no one notices the gigantic payment. So less ‘market rates’ and more ‘mates rates’!. As with banking and other senior jobs the market place argument is an attempt to deceive, to imply a commercial rigour which simply does not exist! But Humphrys does have one point.  It is the senior managers of the BBC who must be held accountable for these salaries.

Once again market rates are justified in grossly inflating the salaries of the already wealthy and powerful while justifying oppressing those less well-off with little influence. The ‘market rate’ argument is curiously rejected for teachers and nurses who are leaving their profession in droves.  I am in favour of the BBC. I consider that there is a place for a medium which is not dependant upon commercial interests. But the needs to be a radical reform of the BBC, just as there needs to be a radical reform of private sector corporate governance.  What has been revealed at the BBC must also be revealed in the commercial world.

BP CEO Bob Dudley Pay Increase; Flawed Ethos of Individualism

The grotesque 20% pay increase to £14 million per year awarded to BP Chief Executive Bob Dudley has surprised even business organizations such as the Institute of Directors (IoD) who now rightly fear that the government will take action on corporate governance. But this act of naked greed illustrates a number of problems with our broken socio-economic model. First lets look at the tired old excuse that has been trotted out once again for Dudley’s award by a BP spokesperson:

BP’s performance surpassed the board’s expectations on almost all of the measures that determine remuneration – and the [pay] outcome therefore reflects this.

In a nutshell here is the application of possessive individualism in a pure form – the arrogance of assuming that the individual at the top has achieved an organizational target solely on their own abilities without the help and co-operation of their staff. So they alone deserve the rewards of extra millions! But Dudley is not the only one, the attitude is endemic – just look at Martin Sorrell at WPP for another example.

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