Lucy Philips wrote an article in 10 September 2009 People Management about the CIPD issuing reward code to tackle executive pay but is it too late? It is my personal view that bankers earn to much in financial bonuses but it reality if I had an employee earning my company 10 million pounds I would reward them heavily for making the money. If a reward code gets issued to the banking industry will there then be a case for a code to be issued across all industries? There is a fine balance between reward and greed; if you want to get the best out of an employee then you have to have an incentive scheme that works to achieve this.
Government and individuals knew what they were doing most of the time taking out big mortgages and other financial loans/credit cards but a lot of individuals who are now struggling have wound it easy to claim that they were mislead and hide behind the blame of bankers. If you can’t afford something then don’t buy it but we live in a world where people want things before they can afford it and the bankers are only offering a service that has been on offer for years.
I do believe that guaranteed pension scheme e.g. Sir Fred Goodwin should be stopped especially when the company ends up being bailed out by government but if a code is introduced which limits financial rewards it will end up being complicated as people will soon find loop holes in the code.
Banks are companies and writing recommendations to the banks in my eyes is pointless. Banks gain customers regardless of all the hidden issues, if they have a good interest rate they will gain the customer or customers will stay with a bank due to the hassle of changing all their details. I believe that the money and time should be spent setting up an free advisor body that can educate the people who think that taking out loans they can’t repay or stop people being able to open a store/credit card when they can’t afford to pay off the money would be a much more sensible solution.