UK CEO needs to work until 1pm on January 4th, 2019 to earn as much as what average employee earns in the entire year

Friday 4 January 2019 is “Fat Cat” Friday. In just three working days, the UK’s top bosses make more than a typical full-time worker will earn in the entire year, according to calculations from independent think tank the High Pay Centre and the CIPD, the professional body for HR and people development.

The average (median) full-time worker in the UK earns a gross annual salary of £29,574. “Fat Cat” Friday recognises that in 2019 the average FTSE 100 CEO, on an average (median) pay packet of £3.9 million, only needs to work until 1pm on Friday 4 January 2019 to earn the same amount. The £3.9 million figure was calculated by the CIPD and the High Pay Centre in their 2018 analysis of top pay and it marks an 11% increase on the £3.5 million figure reported in their 2017 analysis. The pay increase means that FTSE 100 CEOs, working an average 12-hour day, will only need to work for 29 hours in 2019 to earn the average worker’s annual salary, two hours fewer than in 2018.

The CIPD and High Pay Centre are highlighting the problem of rising executive pay in a new report launched today. The report, RemCo reform: Governing successful organisations that benefit everyone, identifies the shortcomings of the remuneration committees (RemCos) charged with setting executive pay and calls for them to be significantly reformed. In particular, it highlights:

  • the myth of ‘super talent’ as a factor that continues to drive excessive pay with one remuneration committee chair commenting: “It’s nuts… and nuts has become the benchmark”.
  • how there needs to be much greater diversity among those responsible for setting CEO pay, both in terms of their ethnicity and gender, for example, but also their professional backgrounds and expertise in order to combat ‘group think’.
  • how current pay mechanisms contribute to the problem of high pay. In response, the CIPD and High Pay Centre recommend replacing long-term incentive plans (LTIP’s) as the default model for executive remuneration with a less complex system based on a basic salary and a much smaller restricted share award. This would simplify the process of setting executive pay and ensure that pay is more closely aligned to executive performance.

The CIPD and High Pay Centre are calling for RemCos to ensure that CEO pay is aligned more appropriately to rewards across the wider workforce and that their contribution is measured on both financial and non-financial measures of performance.

Whole story here.

The art of the elevator pitch

Carmine Gallo in HBR:

According to molecular biologist John Medina of the University of Washington School of Medicine, the human brain craves meaning before details. When a listener doesn’t understand the overarching idea being presented in a pitch, they have a hard time digesting the information. A logline will help you paint the big picture for your audience.

In Hollywood cinema, one of the greatest loglines of all time belongs to the iconic thriller that kept kids out of the ocean during the summer of 1975:

A police chief, with a phobia for open water, battles a gigantic shark with an appetite for swimmers and boat captains, in spite of a greedy town council who demands that the beach stay open.

What makes it work?

The logline for Jaws identifies the key elements of the story: the hero, his weakness, his conflict, and the hurdles he must overcome — all in one sentence. It depicts the overarching storyline in an interesting, straightforward way, rather than focusing on details that might seem meaningless without the context of the bigger picture.

More here.

The eight archetypes of leadership

Manfred Kets de Vries in HBR:

  1. The strategist: leadership as a game of chess. These people are good at dealing with developments in the organization’s environment. They provide vision, strategic direction and outside-the-box thinking to create new organizational forms and generate future growth.
  2. The change-catalyst: leadership as a turnaround activity. These executives love messy situations. They are masters at re-engineering and creating new organizational ”blueprints.”
  3. The transactor: leadership as deal making. These executives are great dealmakers. Skilled at identifying and tackling new opportunities, they thrive on negotiations.
  4. The builder: leadership as an entrepreneurial activity. These executives dream of creating something and have the talent and determination to make their dream come true.
  5. The innovator: leadership as creative idea generation. These people are focused on the new. They possess a great capacity to solve extremely difficult problems.
  6. The processor: leadership as an exercise in efficiency. These executives like organizations to be smoothly running, well-oiled machines. They are very effective at setting up the structures and systems needed to support an organization’s objectives.
  7. The coach: leadership as a form of people development. These executives know how to get the best out of people, thus creating high performance cultures.
  8. The communicator: leadership as stage management. These executives are great influencers, and have a considerable impact on their surroundings.

More here

A modest proposal: eliminate email

The concept is simple. Employees no longer have personalized email addresses. Instead, each individual posts a schedule of two or three stretches of time during the day when he or she will be available for communication. During these office hours, the individual guarantees to be reachable in person, by phone, and by instant messenger technologies like Slack. Outside of someone’s stated office hours, however, you cannot command their attention. If you need them, you have to keep track of what you need until they’re next available.

On the flipside, when you’re between your own scheduled office hours, you have no inboxes to check or messages demanding response. You’re left, in other words, to simply work. And of course, when you’re home in the evening or on vacation, the fact that there’s no inbox slowly filling up with urgent obligations allows a degree of rest and recharge that’s all but lost from the lives of most knowledge workers today.

This is from an HBR article by Cal Newport. You can and should follow his blog.

I want to hear what you think… particularly the ways in which you can make this (or some version of it) work. Drop me a note using the “Contact me” button on the ruler.

Start with the light

Doc Searls on his blog.

So where does [architect] Bill Patrick start, working unassisted by computer?

“I start with the light,” he says. “I say ‘where do we want the light?'”

We wanted our light coming from the direction of our hilltop view toward San Francisco Bay. We also wanted to enjoy that light outdoors as well as inside the house. The result is a lot of glass on every floor facing the Bay, and a deck or balcony outside every room on the Bay side the house. The roof is nearly flat, to maximize interior space within the local limits on roof height above grade, and the whole thing is not only beautiful, but unlike anything else, anywhere. It expresses Bill’s art, and it reflects our original intentions.

In other words, it’s a creation, not a replication or a variation. I also can’t imagine seeing this house as a template for anything else.

The same principle applies for any communicative act – letter, email, text, talk, presentation, etc. Start with the light; with what the purpose of the act is. And work backwards from there.

More here.

Want to Be a Leader? Keep a Journal.

 

Research has documented that outstanding leaders take time to reflect. Their success depends on the ability to access their unique perspective and bring it to their decisions and sense-making every day.

Extraordinary leadership is rooted in several capabilities: seeing before others see, understanding before others understand, and acting before others act. A leader’s unique perspective is an important source of creativity and competitive advantage. But the reality is that most of us live such fast-paced, frenzied lives that we fail to leave time to actually listen to ourselves.

Gaining access to your own insight isn’t difficult; you simply need to commit to reflecting on a daily basis. Based on research (my own and others’) and many years of work with global business leaders as a consultant and international management professor, I recommend the simple act of regularly writing in a journal.

 

 

The medium is the massage: on doing the same expecting a different result

James Shelley on his blog:

Put a group of people in a room. Give them a whiteboard, pens, and markers. Ask them to develop an idea.

Put the same group of people in another room. Give them pipe cleaners, Play-Doh, a stage, a guitar, and LEGO. Ask them to develop an idea.

How different will the ideas be that emerge from the two different rooms?

In other words: How do the tools we use determine what we come up with?… or whether we engage at all.

It’s a question worth asking – in addition to location, time and venue.

Perhaps our people fail to come up with new solutions or ideas because we always ask them for those novel ideas in the same meeting, in the same place, in the same manner, and using the same tools.

More here.

p.s. The tile of the post is not a typo 🙂