And nike is replacing ceo john donahoe after a series of missteps that have cut its market share. Nonetheless, over nearly five years in charge, he's earned nearly $104 million, despite the company losing $40 billion worth of value. Another company to lose billions in value is plane—maker boeing. Is plane—maker boeing. Its recently departed boss, its recently departed boss, dave calhoun, lost his job dave calhoun, lost his job after struggling to deal after struggling to deal effectively with a series effectively with a series of safety incidents, including two fatal accidents. Of safety incidents, including two fatal accidents. Despite that, he got a pay despite that, he got a pay package worth more than package worth more than $30 million as he was leaving. $30 million as he was leaving. This graph marks the change this graph marks the change in ceos, and as you can see, million last year. In ceos, and as you can see, that can sometimes lead that can sometimes lead to a pretty big swing to a pretty big swing in a company's value, in a company's value, as investors express as investors express their confidence — or otherwise — in the their confidence — or otherwise — in the individual leading a company. Individual leading a company. For those individuals running for those individuals running an s&p 500 company in the us, an s&p 500 company in the us, the median pay package has been the median pay package has been rising steadily, rising steadily, hitting a record high of $16. 3 hitting a record high of $16. 3 million last year. Shares often make up a big part of the typical award. The top earners were way above that. Hock tan, who runs chip—maker broadcom, got $162 million. Nikesh arora got $151 million at cybersecurity firm i'm proud of the opportunities we've created for them, because there's been huge upward mobility in our company by the very people that started at the bottom — i'm one of them — and enabled themselves to not only work their way up, but to work their way up and earn more. However much an employee earns, elon musk is hoping to outstrip them all. The founder of the electric carmaker tesla is going through the courts to get the $56 billion package shareholders awarded him. If it comes off, it would be the biggest pay package in us history. As the boss, he's had to make difficult decisions, like at x, where he cut lots ofjobs quite abruptly when he took over. He explained the responsibility to my colleaguejames clayton. I wouldn't say uncaring. You know, the issue is, like, the company's either going to go bankrupt. . . . . If we do not cut. Costs immediately. This is not— a caring/uncaring situation. It's like, if the whole ship sinks, _ then nobody's got a job. So what does it take for the ceo to make sure they're doing theirjob properly? what are the skills they need and that are worth so much money? i've been speaking to one top executive coach who works with the likes of microsoft, avon and standard chartered bank. Alisa cohn, welcome to the programme. I just want to begin with this, because one of the most recent eye—watering pay packets that we've noticed — totalling eye—watering pay packets that we've noticed — totalling more than $110 million, plus the use of a jet to commute — has been for the new boss of starbucks. So, how does a company decide what a boss — a single individual — is actually worth? mostly, it's the board who decides, based on market comps, based on certainly bringing external consultants in, and also getting a little bit of a sense of what this new person could do, you know, for the company. So, in the case of brian niccol being brought into starbucks, i think it's pretty obvious that there's a big hope for him and his ability to turn that company around, which is certainly needed right now. If we stick with starbucks's brian niccoljust for a moment, he's been brought in to try and turn around a company which employs nearly 400,000 people around the world. And he has a host of problems, including products, stores and pricing. So, how does a single individual go about tackling a list of problems like that? a single individual does it because he's the ceo, and what he's able to do, what the ceo is able to do is to certainly set a new strategy. So, that may sound kind of like pie—in—the—sky, but i think it's really important for the ceo to really assess what's going on and to set up a specific game plan to make that turnaround. The second thing the ceo can do is set the culture — so, for example, in the case of brian nicoll, him making sure that people are coming back to the office to work together, not in a draconian way, necessarily, but understanding that there is a need to bring people back into the office. I don't agree or disagree with that, but setting the culture and setting the expectations is one example of what he's able to do to turn a large company around with, as you said, 400,000 employees. Alisa, how important is it to the success of a ceo that they understand the culture of a company? so, for example, are in—house promotions a better bet for the ceo position, as recent events at nestle and nike indicate? what they are able to do is for contacts and they're low to be the lightning rod. That's why it's so hard to be the ceo. That's why it's so hard to be the ceo. I honestly think that the new nike ceo is probably there's a lot of pressure to keep the northstar inside of the company in light of so many different opinions and criticism. Alisa, how important is it to the success of a ceo that they understand the culture of a company? so, for example, are in—house promotions a better bet for the ceo position, as recent events at nestle and nike indicate? it's such an interesting question — because so often, boards want change, so they want to bring in someone from the outside. And when that person doesn't understand the culture, doesn't understand how to work inside of the company, that is in some ways a huge impediment. At the same time, you probably would think somebody who's been internal, for example, at nike and even at disney, they've been internal for a while, and they maybe understand the culture too well and are, in some ways, not the agents of change. So i think as a board, when you're thinking about who the new ceo needs to be, you need to balance the need to do something inside of the culture, to sort of find somebody who can do a good job in working inside of the culture, but also be able to bring the change. What they are able to do is for contacts and they're low to be i honestly think that the new nike ceo is probably the best exemplar of that, in the sense that he obviously was there for 32 years, and then also he had time away, so he brings the sort of external/internal view that would be very useful — hopefully will be very useful — for nike right now. You coach executives at some of the biggest names, including google, etsy and johnson &johnson. So what are the most important characteristics to be a successful ceo? and can they be taught? can anyone take on being a ceo at one of these major companies? the most important quality that you need to be the ceo is knowing that you will be able to be the ceo. There is a sense of confidence and, you know, healthy ego that you need to bring to the table. The second thing you need to bring to the table is an ability to adapt. So, you've got to be able to assess the situation, make some important decisions and then adapt them as you go. Can that be learned? i think it's an interesting question. I always think about inside and then also outside. You need to develop your own sort of internal state there soon if you will get stuck in corporate america because they don't have the ability to be decisive and exacted —— adaptive. I always think about inside and outside. You need to develop your own internal state to know that you can handle the pressure, the as i was telling you, there is normall know;e gap as i was telling you, there is normall know thatip as i was telling you, there is normall know that you internal state to know that you can handle the pressure, the difficulty, the spotlight, and difficulty, the spotlight, and you also need to know the you also need to know the external skills around decisiveness and adaptability external skills around decisiveness and adaptability and strategic skills to be able and strategic skills to be able to do a good job in that role. To do a good job in that role. Given all the executives you've given all the executives you've worked with, worked with, what would you say what would you say motivates them? motivates them? is it as simple is it as simple as money for them, as money for them, or is there something or is there something more innate? most ceos that i coach more innate? most ceos that i coach are motivated by knowing are motivated by knowing they can make a difference, they can make a difference, knowing that they can, knowing that they can, you know, turn a company around you know, turn a company around there is normally a huge gap or grow a company even more. Or grow a company even more. Also they're touching also they're touching hundreds of thousands of people's lives — hundreds of thousands of people's lives — and that matters a lot to them. And that matters a lot to them. And the ceos that i coach and the ceos that i coach really get excited about really get excited about the ability to have an impact the ability to have an impact in the world. In the world. And then, of course, and then, of course, there are trappings that there are trappings that come along with that, come along with that, but they're really but they're really focused on stewardship. Focused on stewardship. Alisa cohn, thank you very alisa cohn, thank you very much forjoining us. Much forjoining us. Thank you very much thank you very much for having me. For having me. As i was telling you, as i was telling you, there is normally a huge gap between what the ceo of a big corporation gets paid and what the average worker gets. So, what impact does that gap have on companies and societies? i've been catching up with a top expert on ceo pay from the washington—based progressive think tank the from the washington—based progressive think tank, the institute for policy studies. Sarah anderson, welcome to the programme. If we look at the s&p 500, 19 companies paid their bosses more than $50 million last year. And, yes, a lot of that was in shares, but how on earth do these companies come to those numbers? what makes one individual worth so much? this is based on the foolish notion that the person in the corner office is somehow almost single—handedly responsible for corporate value and that the people on the front—lines in these companies, who might have their actual hands on the product and delivering the service, are worth only a fraction of that. Those extreme gaps between ceo and worker pay, you tend to have lower morale and lower productivity and higher turnover rates. And so it's bad for business. It's not sustainable over the long term. What are the broader impacts for an economy when you have the figureheads of companies such as tesla boss elon musk earning so much — i mean, he's still going through the courts to try and get his $56 billion pay package — versus the lower pay of key workers such as nurses and teachers? i think runaway ceo pay is bad for our economy, bad for democracy and bad for business. Too much money is being siphoned and extracted from workers who are doing tough jobs at lower levels of the pay scale and funnelled up to the top, to the point where we have so much money concentrated in so few hands that it is a threat to our democracy. It's a threat to pushing for policies. We have not had a raise in the minimum wage in the united states for over a decade. Big, powerful corporate interests have blocked that kind ofjust small, modest steps of progress to having a more equitably shared economy. And it can contribute to people shirking their responsibilities cos they feel like, why should i try that hard when i'm getting such a small reward for the labour that i'm putting into this? a recent bentley university gallup survey found that 82% of americans think it's important to avoid a major pay gap between the ceo and the average worker. And a think tank recently suggested higher tax rates for companies where the gap is too big. Do you think that's the sort of idea that could be a vote—winner in the upcoming election? or is it politically too toxic for presidential candidates given they end up dealing with these individuals? pushing for policies to crack down on ceo pay would absolutely be a vote—winner. I have spoken to groups in small towns in swing states in four different states now. I would walk into audiences of republicans and expect to get a lot of debating, and i'd be allarmed with my arguments against extreme ceo pay levels, and what i found was enormous common ground. The problem is that big money has huge influence over our political system, and candidates are afraid to rock the boat when it comes to their campaign finance. Not all of them, but every poll is showing that this is a trans—partisan issue. Across the political spectrum, people are just fed up. Sarah anderson, thank you very much. Do you think the pressure and the majority of workers have been feeling has made companies and politicians any more inclined to act on executive pay? i inclined to act on executive. A ?. , 4' inclined to act on executive a ?. , ~. , ~' inclined to act on executive a 7. , ~. , ~ pay? i would like to think so. I'd also like _ pay? i would like to think so. I'd also like to _ pay? i would like to think so. I'd also like to think pay? i would like to think so. I'd also like to think that pay? i would like to think so. I'd also like to think that the | i'd also like to think that the pandemic should have made it so much _ pandemic should have made it so much even — pandemic should have made it so much even more obvious that people — much even more obvious that people doing some of the lowest paid work in our country are absolutely essential. And yet, as soon — absolutely essential. And yet, as soon as the heat was off, companies stopped giving out their— companies stopped giving out their little extra hardship pay and went right back down to the rock— bottom wages that a lot of the essential companies. I'm still— the essential companies. I'm still waiting for it. I thought after— still waiting for it. I thought after the 2008 financial crisis. _ after the 2008 financial crisis, the mystique would be gone, — crisis, the mystique would be gone, these were not top talents— gone, these were not top talents in our economy that were — talents in our economy that were responsible for driving our economy off a cliff and resulting in millions of people losing — resulting in millions of people losing their houses and their jobs — losing their houses and their jobs and _ losing their houses and their jobs. And yet almost immediately, the big banks and other_ immediately, the big banks and other financial firms that were complicit _ other financial firms that were complicit in that national crisis _ complicit in that national crisis turned around and started _ crisis turned around and started giving out big bonuses again — started giving out big bonuses again. So, asjust a very deeply— again. So, asjust a very deeply entrenched systemic problem and it's going to take public— problem and it's going to take public policy to change it. Sarah anderson, thank you very much. All right, thanks. So how does one individual cope with all the weight and responsibilities of running a business? there any numbers of big decisions to make. Hundreds of thousands of staff and their livelihoods, it could end a lot of pressure, but some individuals seem to thrive on that pressure. They include the serial entrepreneur from companies marsha kilgore. Marcia kilgore, welcome to the programme. On this week's show, we're looking at the importance of the ceo to a company, and you've started a string of companies of your own. In your experience, what is it that a ceo can do for a company that no—one else can? you know, i think it's so important to have a great ceo and to have somebody who can really look at the different streams of work that need to be done, make those organised, prioritised, make sure that the different teams in the company are working together harmoniously and ensuring that time is not wasted, money is not wasted and energy is not wasted on things that are not going to move the dial for the company, while ensuring that there is a great, enterprising and inspiring corporate culture throughout. Marcia, when you're running a company responsible for the livelihoods of hundreds or thousands of people, but also have to think about other things like shareholders, climate change and products — to name a few — what weighs most heavily on you as an individual? it's really the human cost and making sure that everyone is given an opportunity to flourish in whatever it is that they've been hired to do within the business. It's so important for me that we are able to pull from each individual the talent that they both naturally have and then are able to develop over the course of their time within the business. It can be really a difficult thing to manage amidst all of the other pressures that you have. It's a hard balance to find. And how did it all start for you? you've also sold companies for big money. What is it like to let go of those companies? for me, i let go of those companies? for me. I am _ let go of those companies? for me. I am a _ let go of those companies? igrr' me, i am a builder. Let go of those companies? igrr' me, lam a builder. Unlocking me, iam a builder. Unlocking really difficult problems. They really difficult problems. They really love building teams and making sure everybody is running fast and efficiently and trying to get something from stasis to rolling. That is where our best. For me, selling a business to a much larger corporation who might be a better fit to deal that next stage of the business is really quite naturalfor stage of the business is really quite natural for me. Stage of the business is really quite naturalfor me. As long as they will respect what the business is about in the first place. For me, it's really 0k. For me, it's really 0k. And how did it all start for you? how did you know you wanted to be and could succeed as a serial entrepreneur and run company after company after company? well, you know, here's the funny thing — i still don't know really, truly that i'm a successful entrepreneur. I think part of being wired as an entrepreneur is you never actually believe it. You think it's going to fall apart tomorrow. You think everything is just going to explode if you do one, you know, small. . . Or make one small misstep. So, i am really down right in the details, most likely to my own detriment, just because i really want everything to work. And i always believe that it's too good to be true. One of your companies is the footwear brand fitflop, which sells everything from flip flops and sandals to trainers and boots. And i know you're not the ceo yourself, but this year, the brand has been launching a refresh of its line—up and a global expansion. When you're leading a company, how do you know it's time to take major steps like that? with any brand, in fact, every few years, you do need to have a refresh. So, you need to look back at what made you successful in the first place, and then look at how that might be relevant to the market today. You need to make sure that all your price points are in line with the market price points and any new competition that has come in. You need to look at where products are selling in volume, where technology is, if any of your competitors have come in and bettered your technology or gotten close to it, and where you are sitting in the market, whether that is america or the americas, emea or asia. And i think coming out of covid, it was just a perfect time for us to reassess where we were as a brand, what our technology looked like, where we were sitting amidst the competitive landscape and just, you know, give it a big push. Another of your companies is the membership—based cosmetics firm beauty pie, which sells discounted make—up. It was just last year that you appointed kevin cornils as the first ceo of beauty pie. So, ijust wonder, as a founder, how do you go about picking the person to be your ceo and run your baby? it is hard to find someone who is smart enough to be able to run so many different programmes in their head, as is necessary when you're running something like beauty pie. Beauty pie, obviously, we launch dozens of new products every year. What we have to do is not only create those products and communicate them for our current members, but then also we have to go out into the universe and convince new prospective members that it's a great idea tojoin our club. So, those two streams, in addition to building your own software, in addition to all the legal things that come along with creating your own product, with laboratories, making sure that everything is, you know, according to the highest level of cosmetic standards and safety, it's an awful lot to do. So, in interviewing ceo candidates, i'lljust say you probably eliminate quite a lot of them just because they don't have the intellectual bandwidth. And then, of course, they have to be able to put up with me. . . Laughter. . Which is a whole additional thing because i am quite impatient, i always want it to be better. You've got to have a lot of patience also to deal with a founder who's very passionate. If we go back to the ceo theme of the show, how many companies is it that you've started now and what makes you want to keep going rather than putting your feet up and enjoying the rewards of all that hard work? i believe i have now had, in my experience, five companies. I'll tell you, just continuously, i'm thinking of ideas, and i don't know what i would do all day. I think probably in a past life, if you believe in that kind of thing, i must have been a market trader, because what really thrills me is finding great stuff and then selling it to people, especially when selling it to people, you know they are going to be very, very happy with whatever the outcome of them using that product is. And getting that feedback is like a continuous pat on the back. I just love to invent things, and i thinkjust being able to improve the status quo is an intellectual challenge for me, and then being able to bring it to prospective customers is a really social thing. And as i'm not an employee, right, i have to sort of create my team. So, i've got that family vibe and a lot of people to stimulate my mind every day. Marcia kilgore, thank you very much. Thanks for having me. Well, that's all for this week. You can keep up with all the latest on the global economy on the bbc news website and its smartphone app. Don't forget, you can get in touch with me and some of the team on social media. I'm @marklobel on x. Till next time, bye—bye. Hello there. Saturday's sunny skies will gradually be eroded by cloud and then wind and rain for many as we close out sunday. Yes, it's going to gradually turn wet and windy, particularly from the south and west. Now, we've already, in southern england, seen some record—breaking rainfall totals for the month, and we're just going to add to those totals over the next few days. Some areas could see another 50—60mm before we close out the month. So, here's that area of low pressure gradually winding its way in from the southwest. Ahead of it, though, clearer skies, so it will be a chilly start to our sunday morning. Some early morning sunshine, but gradually we'll see that cloud pushing its way steadily north and east, perhaps northeast england and eastern scotland clinging on to the best of the brightness of the brightness throughout the day. So, as we go through to the afternoon, we mightjust see some sunny skies continuing. Cloudier skies out to the west, a few isolated showers, temperatures generally between 12—14 degrees. Not too bad in the afternoon into northern ireland and north northeast england as well, but you can see the cloud arriving. There'll be a few outbreaks of showers ahead of it moving through the midlands, gradually the heaviest of the rain pushing into south and west wales along with southwest england, and the winds, will strengthen to gale force gusts with it, too. Top temperatures generally then 12—15 degrees as we go through sunday afternoon. Through sunday afternoon. So, those gusty winds will strengthen further overnight as that rain continues to move its way steadily north and east, steadily north and east, pushing into the midlands, southeast england and to the north of england by dawn on monday morning. Pushing into the midlands, we keep the clearer we keep the clearer skies in scotland. Here, still single figures, skies in scotland. But not quite as cold to start monday morning with the cloud, monday morning with the cloud, wind and rain. Wind and rain. There is still a level there is still a level of uncertainty exactly of uncertainty exactly where this low pressure where this low pressure is going to sit. It's going to be is going to sit. Pretty slow—moving. Potentially, the heaviest potentially, the heaviest of the rain will always be of the rain will always be across england and wales, with a few scattered sharper with a few scattered sharper showers into northern ireland showers into northern ireland and a drier story and a drier story for much of scotland. But we'll keep a close eye on that. For much of scotland. Some of that rain really quite heavy across northwest england for a time, potentially for a time, potentially brightening up by the end of the afternoon across central brightening up by the end and southern england —13—17 degrees. —13—17 degrees. The low pressure slowly starts the low pressure slowly starts to ease away on tuesday and then on wednesday a quieter to ease away on tuesday story with a greater chance of seeing more chance of seeing more sunshine for early october. Sunshine for early october. And in westminster, labour mp rosie duffield quits the party, accusing prime minister keir starmer of hypocrisy. Hello, i'm helena humphrey. Hezbollah has confirmed that an israeli strike on a beirut apartment block on friday killed its longtime leader. Hassan nasrallah led the lebanese based group for 32 years. His assassination deals a huge blow to the organisation he's led since 1992. Israel had already killed a number of other senior commanders in recent weeks. Israel's prime minister called nasrallah's killing an historic turning point and said israel had settled the score. In a moment, we'll bring you more reaction from the region. But first, a look at the impact in lebanon where the health ministry said 33 people were killed and nearly 200 were injured in new israeli air strikes on saturday. 0ur senior international correspondent 0rla guerin has the latest from beirut.