High tech fat cats slammed as 'money for old rope

High tech fat cats have come in for fresh criticism as they have once again been lambasted for receiving high wages which are apparently unrelated to the performance of their companies.
Over the past couple of years many top execs within ailing IT companies have been attacked for claiming huge bonuses despite their companies recording ever-poorer results.
Now research from interim management firm Executives Online has revealed that almost a fifth (18 per cent) of execs from all sectors look upon the high tech sector as the worst for rewarding poor performance. Only the finance sector came in for more criticism with 36 per cent citing it as the worst for rewarding under-performing senior management.
Controversial characters such as Barclay Knapp at NTL and Chris Gent at Vodafone have attracted some fierce criticism over the past couple of years as shareholders and the media have hit out at bonuses and pay rises which often are seen as undeserved.
On the other hand, leading execs such as Cisco's John Chambers and Deutsche Telekom's Ron Sommer have won plaudits for forgoing wages and bonuses while their companies weather the storm.
Norrie Johnston, managing director of Executives Online, believes the situation is changing as peer pressure brings about a greater belief in meritocracy.
"It is heartening to see that so many senior executives think performance and rewards should be more closely linked and the current approach needs changing," he said.