Question: Who is worth £14 million per year?
Answer: Bob Dudley, the CEO of BP – according to the board of BP
It was announced last week that the CEO of British Petroleum is to get paid an enormous amount for his leadership of the company. I thought that you might like to discuss with your children the facts below to see whether or not they think it is a fair reward for his efforts…
- The total pay package for Bob Dudley was £14 million for the year
- The board of BP approved the package
- Nearly 60% of investors in the company did NOT approve of the package but their collective voice counted for nothing – they were overruled by the board
- This was the worst trading year in the history of the company. They lost a little over £4 billion. For those with an understanding of loads of noughts that is £4,000,000,000 which is equivalent to a loss of over £60 for every single person in the UK
- The £14 million is over 90 times more that the Prime Minister earned – David Cameron had to make-do on a trifling £144,000
- The £14 million is more than 500 times the average UK salary which is £26,500
- The Church of England pension board questioned whether it was morally right that an individual should be paid this amount
- One individual at the AGM suggested that the level of pay was a “Public Relations nightmare” for the company
- Several individuals wondered what Mr Dudley would have been paid if the company had actually made a profit!
- The board argue that to procure and retain the services of an individual with the skills of Bob Dudley it is necessary to pay this level or remuneration
OK, I might look a little biased so let’s look at a few other figures to balance things out:
- Wayne Rooney earns just about the same amount as Bob Dudley- £260,000 a week
- According to Business Insider the richest person in the UK is Len Blavatnik (owner of Warner Music Group) with an estimated wealth of over £13 billion. Poor Mr Dudley will have to work over 900 years on his current salary to overtake the very very rich Mr Blavatnik
- Bill Gates of Microsoft fame is worth 4 times more than Mr Blavatnik
So what can we glean from this plethora of figures? If your youngster is exceedingly good at football or has exceptional leadership abilities then persuade him or her to be a professional footballer or a CEO. That is unless he or she looks like he has extreme business acumen, in which case owning a large company looks like a good idea.
Is this quantity of money evil? Certainly not if it is in the hands of Bill Gates who has already given away over £20 billion to support extremely noteworthy causes and it is argued by many that he has done more good in the world than any other living individual. Which leads me to believe that it is not how much you earn, but what you do with it that is the real measure of a person’s worth.
What do the kids think?