004wercras
I disagree. The mantra of a 'tight market for talent' has been trotted out by the executive class for years. Consider these other factors that lie behind their obscene packages.
1. Globalisation has led to medium and low skilled jobs moving to the cheapest markets. The capital(lets call the managers that as that's what they represent) have not redistributed this dividend to the labour and it could be argued the shareholders. This has led to ever increasing rewards for the capital at the expense of the labour. There are plenty of studies out there that look at the non Anglo saxon economies executive remuneration packages; which mostly show the same performance for much lower packages. ie Germany or Japan.
2. Board capture. The very executives who make up the board are from the same executive class who manage the company. Is there a shareholder vote on pay at Swire? Ask yourself why. It is a revolving door of self interest that ensures the 'talent' pays itself ever higher salaries. Imagine if we had a board of pilots that set pilot salaries at Cathay. They would go through the roof.
Onto the case of the helpless managers who have a 'current bonus scheme [that] is not something that the executives want'. Fine. Donate it to charity. Build an orphanage, set the example and show some LEADERSHIP by setting the example. I highlight the word leadership, because leaders set the example, in behaviour and by extension pay.
You mentioned the 'self indulgent lifestyle of the older pilots'. You can lay this challenge to your ex Swire manager friend. If I don't accept a payrise for the rest of my career then he can get his mates who run Swire to not accept one either. According to him they don't want it anyway so it should be easy.