The Reputation of Business Leaders Has Been Badly Hurt
Fully 68% of American adults and between 57% and 75% of those in Britain, France, Italy, Spain and Germany say that "as a result of the current economic situation" their opinions of business leaders have become worse.
Even more people (including 76% of Americans and between 65% and 81% of adults in the five European countries) believe "the recent behavior of business leaders in general" has been unethical.
Business Leaders Are Paid Too Much
Fully 79% of Americans, and similar majorities in the five European countries, believe that business leaders "are generally paid too much." In Germany, a massive 88% of the public believe this.
Government Should Claw Back Bonuses
Majorities, from 68% in the United States and Britain, to 81% in France and 82% in Germany, believe that governments should claw back bonuses or pensions of business leaders whose companies have been bailed out with government money.
However, there are big differences between the two English speaking countries and those in continental Europe on the payment of bonuses in the future. Large majorities in Spain (79%), Italy (73%), France (67%), and Germany (65%) favor bonuses forming a lower part of pay for business leaders in the future. Opinion is split on this idea in the United States (37% to 35%) and Britain (38% to 36%).
Support for Linking Pay to Profits
Clear but not large majorities favor linking business leader’s total pay to the profits made by their companies, and relative few people oppose this.
In Britain, a 48% to 18% plurality favor this linkage.
Job Security Should be in a Higher Priority than Increasing Profits by Cutting Jobs
Massive majorities of the public in all six countries, from 87% in the United States and 85% in Britain to 95% in France and Spain believe that securing the jobs of their employees should be a higher priority for companies than increasing their profits by cutting their employees.
So What?
The reputation of business and business leaders is not just a beauty contest. When business leaders become more unpopular, it affects not just the public but how governments handle business issues, how the media report business stories and how other interest groups interact with them. Perhaps the most dangerous effect of being very unpopular is that it increases the likelihood of governments adopting tough anti-business policies on everything from regulation to taxation.
One striking problem for business leaders in a recession is that the public – overwhelmingly in all six countries – thinks employee job security should trump increased profitability. While many business leaders try to keep job loses to a minimum; they usually regard their shareholders’ interest as their highest priority. The public disagrees.
