If you were called in to run a bank?and had to hire consultancy McKinsey and investment bank Rothschild to advise and on formulating a strategy at great expense, do you still deserved to be paid £90,000 per month, plus perks? Remember that whether the bank succeeds or fails, you will walk away with over a million in 12 months. |
To pay a chief executive 90k stg per month plus perks, the bank hope that he will have the competence and experience needed to run the bank and turn it back to profitability.
It is a waste of the bank's resources to employ a consultancy and a investment bank at great expense, to formulate a stragegy which the chief executive has to do in the first place.
Also no one knows those strategies from outside sources can help the bank and able to turn it around to profitablity.
I will recommend that the chief executive do some reading on the book 'Creator and Trader' on the author's vision for the growth in the UK mortgage market.
Yes absolutely. If a consultant is worth his money he must earn the customer 5-10 times his fees. Wouldnt you pay £1m to earn £10 million. Makes a lot of sense to me.
