FTSE 100
Dow Jones

Tuesday, 10 September 2013

The value of nothing

I was struck by a claim at the BBC enquiry yesterday. In a typical piece of obfuscation Mark Thompson claimed that in laying off 227 managers in three years the BBC says it has spent £25 million over 3 years but saved £35 million in wages in the same period, and had thus saved money which is a good thing.

Maybe, but that isn't the whole picture because in saving £10 million the BBC loses up to 3 years of work per person, so it only makes a real saving if you assume that the work of those 227 senior managers had a value of less than £15,000 per year per person. Which makes you wonder why they were paid so much in the first place.

1 comment:

Demetrius said...

This is about wages. But what about the expenses? A cavalry squadron of top brass would be very heavy on the expenses. Also, all the other incidentals such as office space, IT backup and all that. This lot cost a lot extra to run on top of their wages.