'Price is what you pay; value is what you get' - Warren Buffett
In 2107 Lionel Messi, world footballer of the year, had a salary of $53 million; with experience an NHS nurse team leader could earn annually a maximum of £34,876.
Should the excitement of the game at the Nou Camp Barcelona bring on a heart attack, who would you want to help, Messi or a trained nurse? In our society there is a disconnection between what we value and the price we are prepared to pay.
In the Corporate world the concept of value is being challenged particularly in finance following the report by the European Banking Authority that showed 3,500 bankers in the UK are paid more than 1 million euros annually.
Chief executives of companies are also coming under fire in terms of both their annual pay and at the level of Pension contributions being provided. FTSE 100 chief executives receive pension contributions amounting to 25% to 51% of their salary. In comparisons their workers average around 10% contribution. In certain companies Pensioners suffer from Clawback, termed by those specific companies as ‘State Abatement,’ believing the use of the term somehow ameliorates a discredited practice.
As trustees of Pension funds we need to be conscious of the value we are obtaining, and the value we are creating and whether the price worth paying!
Written by Stephen Fallowell - Committee Member
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