Australia the Corporation
Just for a moment, let’s imagine that the Federal Government is actually a corporation and we as citizens each hold a share.
Now let’s imagine that the AGM is coming up on Tuesday. The CEO and CFO have both made statements to the affect that due to ongoing revenue falls, structural changes to expenditure are going to need to be made. Some products are going to be discontinued, others will cost more, efficiency measures will be taken, there will be lower dividends and employees pensions are going to change and many will lose their jobs altogether.
The CFO has even said that the burden must be shared by all.
Now as a shareholder, I have a vested interest in the long term viability of my company’s balance sheets. I understand that costs need to be cut in the face of lower earnings and I accept that. In the long term, it should mean higher dividends for all shareholders.
Given the situation we are facing though - I think it’s time we discussed the remuneration packages of the CEO, CFO and other board members. After all it was the CFO that called for the burden to be shared. Should their remuneration package not be trimmed to suit the unfortunate situation we have before us? That the burden would be indeed shared by all.
I would hope so.