Just discovered that the chairman of Carillion is non other than that community minded philanthropist Philip Green.
Now everyone is up in arms about Carillion – I know I am. But in reality the issue is not this company in particular it is the ethos behind the thinking and the actions that caused the disaster.
This company has been criticised because it continue to pay bonuses when the company was clearly heading for disaster – and yes that is partly despicably wrong. BUT this greed is common enough at the corporate level -RBS! BHS! BT – I remember when after particularly abysmal performance of the chief exec of the team was still paid his productivity bonus. When questioned on the situation by John Humphrys a spokesperson for the company EO deserved his bonus as he made a plan and stuck to it. When John pointed out that clearly plan hadn’t worked the spokesperson said that wasn’t his fault!
People are also raging about Carillion often refuses to pay suppliers and contractors on time (often giving absurd reasons such as ‘mud slides in India’ apparently!) Big companies have always done this – ask anybody who’s ever been a supplier/subcontractor to a large organisation!
The way in which massive chunks of money were given to a failing company was unbelievable. Size of loss? £1.15 billion! No matter – here’s £1.7 billion of the government contracts.
Of course there is the justifiable outcry about possible loss of 20,000 jobs. But seriously do these people care? I mean those in charge of Carillion who are still taking enormous bonuses and salaries – in the case of the CEO even after resigning due to poor performance! Well, let me say, if they cared for their employees would they really have allowed the pension fund to build up a deficit of £518 million!
None of this will affect these people of course. They are safe and will simply and will amble away with their fortunes and probably just take another post ready to do the same thing again. Meanwhile thousands of innocent people will be badly affected by a culture of corporate greed.