Rewarding hard work?

Executive pay is unfair, undeserved and out of control

The Guardian's front-page "special report" focuses on how pay for executives at Britain's top companies has leapt 10 per cent over the past year, despite their companies losing almost a third of their value in the wake of the worst financial crisis in living memory.

One corporate example, in particular, stood out to me:

The best-paid boardroom last year was that of Tullow Oil, a London-based oil exploration business, where 11 directors picked up a total of £59m. Most of their gains came from share options, as they cashed in on a share price that had soared along with the oil price. The directors made much more from their cheap share handouts than the rest of the 470-strong workforce were paid in the year.

So much for the argument that businessmen who rake in obscenly large salaries on the back of huge company profits deserve the money as a reward for their hard work. Why should the bosses at Tullow Oil -- including the chief executive and founder, Aidan Heavey, who took home an eye-watering £28.8m last year -- benefit so disproportionately from something as arbitary and uncontrollable as a record oil price? And why are we not taxing them more, in the middle of a recession, a time when politicians on all sides can't stop banging on about the need for spending cuts?

Politics of envy, I hear you ask? In my view, there's not enough envy around. Or outrage.

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

Ukip's Nigel Farage and Paul Nuttall. Photo: Getty
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Is the general election 2017 the end of Ukip?

Ukip led the way to Brexit, but now the party is on less than 10 per cent in the polls. 

Ukip could be finished. Ukip has only ever had two MPs, but it held an outside influence on politics: without it, we’d probably never have had the EU referendum. But Brexit has turned Ukip into a single-issue party without an issue. Ukip’s sole remaining MP, Douglas Carswell, left the party in March 2017, and told Sky News’ Adam Boulton that there was “no point” to the party anymore. 

Not everyone in Ukip has given up, though: Nigel Farage told Peston on Sunday that Ukip “will survive”, and current leader Paul Nuttall will be contesting a seat this year. But Ukip is standing in fewer constituencies than last time thanks to a shortage of both money and people. Who benefits if Ukip is finished? It’s likely to be the Tories. 

Is Ukip finished? 

What are Ukip's poll ratings?

Ukip’s poll ratings peaked in June 2016 at 16 per cent. Since the leave campaign’s success, that has steadily declined so that Ukip is going into the 2017 general election on 4 per cent, according to the latest polls. If the polls can be trusted, that’s a serious collapse.

Can Ukip get anymore MPs?

In the 2015 general election Ukip contested nearly every seat and got 13 per cent of the vote, making it the third biggest party (although is only returned one MP). Now Ukip is reportedly struggling to find candidates and could stand in as few as 100 seats. Ukip leader Paul Nuttall will stand in Boston and Skegness, but both ex-leader Nigel Farage and donor Arron Banks have ruled themselves out of running this time.

How many members does Ukip have?

Ukip’s membership declined from 45,994 at the 2015 general election to 39,000 in 2016. That’s a worrying sign for any political party, which relies on grassroots memberships to put in the campaigning legwork.

What does Ukip's decline mean for Labour and the Conservatives? 

The rise of Ukip took votes from both the Conservatives and Labour, with a nationalist message that appealed to disaffected voters from both right and left. But the decline of Ukip only seems to be helping the Conservatives. Stephen Bush has written about how in Wales voting Ukip seems to have been a gateway drug for traditional Labour voters who are now backing the mainstream right; so the voters Ukip took from the Conservatives are reverting to the Conservatives, and the ones they took from Labour are transferring to the Conservatives too.

Ukip might be finished as an electoral force, but its influence on the rest of British politics will be felt for many years yet. 

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