Tesco appoint new CEO on ridiculous salary!

[Mojocvh]

Ah well, at least the Tax Payer won't be topping up his wage to a living level...

[Thankyou4calling]

SpeckledJim said:

But there are:

• Many more people who are qualified to be CEO of Tesco than there are people able replace Wayne Rooney.

• Many ways for a CEO to disguise a poor performance, but nowhere for a Man U striker to hide. He's either good enough or he isn't.

I'm not so sure about the number qualified for each position. Tesco would recruit worldwide for the post and want the very best of the best, this would not be a big number, the short list would be a handful of people.

With Rooney, as we saw at the WC there are a decent number of players ( most teams had a couple) as good if not better.

Just my brake on it.

[Russ T Bolt]

Thankyou4calling said:

I'm not so sure about the number qualified for each position. Tesco would recruit worldwide for the post and want the very best of the best, this would not be a big number, the short list would be a handful of people.

With Rooney, as we saw at the WC there are a decent number of players ( most teams had a couple) as good if not better.

Just my brake on it.

The number of people running big retail operations globally and therefore of suitable calibre to run Tesco's Is far from a handful. If you then add in CEO and chairmen of large multinationals who wouldn't struggle with running Tesco's one bit.

[Derek Smith]

So for a salary of £1.25m they got the bloke they wanted. That makes the salary reasonable.

[oyster]

jonnydm said:

CEO may help generate good performance, for which I'm sure he'll be rewarded generously.

Rooney himself effectively sells shirts, enables the team to get into the Champions league + high up in the Premiership (or not!) which generates cash.

How much cash though?

Rooney's salary is £15m a year. His employers also need to consider the opportunity cost of holding onto him rather then selling him. Let's say he could be sold for £30m and you amortised that value over 3 years. It means Rooney actually costs Man Utd £25m a year. Their profits for the year are about £100m, so Rooney alone needs to help increase profits by 25% to justify his income.


As to the new Tesco CEO. His salary is just over £1m. And lets be generous and say his other perks add up to a further £4m a year. So he costs £5m a year. For a company whose profits are £3bn a year, he only needs to increase profits by just 0.16% to justify his earnings.

Pretty obvious that most CEOs are vastly underpaid and most footballers vastly overpaid.

[jonnydm]

oyster said:

jonnydm said:

CEO may help generate good performance, for which I'm sure he'll be rewarded generously.

Rooney himself effectively sells shirts, enables the team to get into the Champions league + high up in the Premiership (or not!) which generates cash.

How much cash though?

Rooney's salary is £15m a year. His employers also need to consider the opportunity cost of holding onto him rather then selling him. Let's say he could be sold for £30m and you amortised that value over 3 years. It means Rooney actually costs Man Utd £25m a year. Their profits for the year are about £100m, so Rooney alone needs to help increase profits by 25% to justify his income.


As to the new Tesco CEO. His salary is just over £1m. And lets be generous and say his other perks add up to a further £4m a year. So he costs £5m a year. For a company whose profits are £3bn a year, he only needs to increase profits by just 0.16% to justify his earnings.

Pretty obvious that most CEOs are vastly underpaid and most footballers vastly overpaid.

I agree with your sentiments although football may be better compared to other industries. With Rooney, its not just that they have him, its that Arsenal, Liverpool, Man City or whoever don't.