What [CEO] wants and expects is to be paid
fairly. He would regard being paid fairly in two
ways. One, that the basic amount he gets is reasonably
comparable with those that he regards
as his peers outside. And the second thing he’d
expect is that if he and the company perform
better, he gets paid more. Now that is what he
would regard as being treated fairly. So if he
didn’t get that he would regard himself as being
treated unfairly. Whether that would have the
effect of him working less hard, I don’t think it
is that simple. Because I think he’d probably still
work as hard, but if somebody is less happy, less
content with life, their performance would tend
to go down. And he might also look for somewhere
else, or have looked somewhere else.
Because the other thing is you want to retain
someone. And if they are unsettled. . . . Most of
pay, in my view, is hygiene. And that includes
performance, it’s not just the base. But it’s very
easy to lose it. You’re most certainly not perfect,
so it’s how little imperfect you can be.