Pub Philosopher, on pensions for corporate bosses:
But when did you last hear of a director or senior executive in a large private sector corporation getting fired? It just doesn’t happen.
The further you climb up the corporate ladder, the more you become “someone like us” to the other senior executives and directors who make the decisions about your future. I have seen this process at work when decisions are made about whether, when and how someone senior should be ‘managed out of the organisation’. During these discussions there is always an elephant in the room. I call it the there-but-for-the-grace-of-God factor. The last thing directors and senior executives want to do is set a precedent that allows one of them can be kicked out of the company without a generous payoff.
As I have said before, you can tell where someone is in the social hierarchy by what happens to them when they screw up at work. You know you have arrived in today’s aristocracy when you are no longer at risk from being dismissed without a substantial payoff. Bankers sit at the top of that pyramid. By comparison, even senior local government officers are well down the pecking order.