Private sector CEOs earn their money (From Warrington Guardian)

Private sector CEOs earn their money

12:53pm Thursday 24th May 2012 in Letters

REGARDING the letter by Ken Magill in the Guardian, May 10, I endorse every word.

The reason these council bosses and Unite union officials justify these large wages is that they have to ‘get the right person to do the job as they have such huge budgets to handle’. This is complete and utter nonsense.

Council chiefs have a guaranteed income via rates which by law everyone has to pay. They go up each year in line with or above the rate of inflation. They don’t have to create money or wealth they just have to manage it and use it to look after and pay for the services and labour that is required.

To compare that responsibility to what a CEO of a large private company is responsible for is ludicrous.

The main objective of bosses of private sector companies is to create wealth and thus profit. No one is ordered by law or any other means to provide them with money.

They have to come up with an idea or a product or service that they then must sell to other people at a price that is higher than the costs involved in producing it. Something your council director of environments or CEOs haven’t got a clue about.

Let’s see if Ms Terris or any other council CEO’s job description could stand up alongside a CEO in a major firm in the private sector.

A EDWARDS Fearnhead