IT is impossible to understand why one man in industry is worth a pay package of up to £10 million over the next five years.

But electronics giant GEC believe George Simpson is. Mr Simpson was tempted to move to GEC from a top job at the engineering group Lucas and it looks as though he will become the fattest of the fat cats in business with what look like easy-to -arn bonuses.

The pay package seems to fly in the face of recommendations for greater restraint by the Greenbury committee, set up in the wake of the pay scandals in the utilities. Labour trade and industry spokesman Nigel Griffiths claims the deal sets a bad example to everyone when the Government is advising pay restraint.

And several leading financial institutions claim the deal breaches rules endorsed by the Association of British Insurers, designed to ensure that huge bonuses can only be won by exceptional performance.

With millions of low-paid workers struggling to keep their heads above water, it would take an exceptional performance indeed to justify such a deal as Mr Simpson's.

The Greenbury committee should look carefully at this pay package.

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