Executive pay rising: 'It really beggars belief'

Top bosses are again being criticised for earning huge salaries even during the current economic crisis. Also, the gap between the tap of top bosses and workers continues to rise. For example:

a) The highest-paid boss on the London FTSE in 2008 was Bart Becht. He received the same pay as 1,374 average workers at his business (Reckitt Benckiser). Becht received about £37m last year.

b) Vladimir Kim, chairman of Kazakhmys, the FTSE 100 mining and metals conglomerate, is paid 183 times the average salary of his workforce, who face what the company admits is a 'higher than usual' fatality rate.

c) The boss at UK supermarket giant Tesco - Sir Terry Leahy - was paid more than 900 times as much as Tesco's average worker,

Instructions
Is this fair? As you listen to this link,

a) write dwn as many internal and external stakeholders as you can

b) Now use Johnson and Scholes stakeolder mapping model to map these stakeholders

c) ) Does your mapping model explain how executives can get their pay increases aproved by company shareholders?

Anger over Tata car factory move

This article gives some useful background on external stakeholders.

TATA – one of India’s largest and most successful business conglomerates has abandoned its plans to build a car manufacturing plant in Singur, West Bengal, India.

The company had planned to use the site to produce its new car – called the NANO. At a price of $USD 2,500, the NANO was claimed to be the world’s cheapest car, and would have been marketed to India’s increasingly wealthy middle classes.

TATA has abandoned its plans to locate the factory in Singur because of the protests of local farmers. These farmers were claiming that the West Bengal state government was evicting them from their farm land to create a site large enough to allow TATA to build its factory.

Since the announcement that TATA plan to locate somewhere else because of these protests, there have been further protests – this time from businesses – such as builders and electricians - who had hoped to be employed to build the factory.

There are several external stakeholder groups in conflict here - local farmers, the Stage Government, builders, workers who will no not be employed in Singpur, possible workers and builders who now WILL be employed at the new location.