Smithers, Get Me an Above-Average Pay Consultant ; Revealed: The Link Between Huge Pay Deals and the Fee-Hungry Companies That Would Have the Simpsons' Greedy Boss Mr Burns Demanding . . .

Summary

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All the children in Garrison Keillor's best-selling novel Lake Wobegon Days are said to be 'above average'.

Though that is a mathematical impossibility, it seems to be a rule that has been taken up with some enthusiasm when setting boardroom pay levels.

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Smithers, Get Me an Above-Average Pay Consultant ; Revealed: The Link Between Huge Pay Deals and the Fee-Hungry Companies That Would Have the Simpsons' Greedy Boss Mr Burns Demanding . . .

The Lake Wobegon effect works like this.

Boards hiring a new chief executive or reviewing pay scales seek the advice of remuneration consultants, whose job it is to know the going rate.

No board, though, wants to pay the average because that would be an admission that the successful candidate or incum...

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