In defence of the golden parachute – Telegraph Blogs  Saturday
30 August 2014 | Blog Feed | All feeds  In defence of the golden
parachute   An offer of a golden parachute is sometimes
necessary for firms to attract the best executives  Remuneration
is back in the press, with proposals to make shareholder votes
binding. Though the latest proposals aren't specifically about
the pay of bankers, it's pretty clear that it is banker
remuneration that most irks the public. People feel that bankers
earned a lot of money as a reward for losing a lot of money and
bankrupting banks that the taxpayer then bailed out, and that
somehow this has been permitted to continue even though the
government now owns the banks.  Well, in the banking sector
there are particular issues around remuneration. In particular,
the greater the level of government insurance of depositors, the
higher will be the average level of banker pay (see p39 here -
but essentially what happens is that if the government bails out
depositors, then bankers