Episode 59

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:00:26. > :00:30.More from me at 10pm. Now, time for This is Show Me The Money, your

:00:30. > :00:35.weekly guide to who is making the cash, how and what it means for the

:00:35. > :00:42.way we work. With us tonight, when your chips are down, so is your

:00:43. > :00:48.computer. Intel puts the chips into four out of five computers. Graham

:00:48. > :00:52.Palmer. Rachel Bridge says she can mean a million before lunch. And

:00:52. > :00:57.Antrim used to drive packs of bacon from here to Switzerland just to

:00:57. > :01:02.keep his clients happy. It is safe to say there is a strong streak of

:01:02. > :01:12.customer service in the air. Fines Cable, the Business Secretary will

:01:12. > :01:14.

:01:14. > :01:17.unveil plans on Tuesday to curb bonuses. When shareholders accept

:01:17. > :01:22.or reject top people's pay, the company will have to accept that

:01:22. > :01:27.verdict. It is just advice which they can ignore at the moment.

:01:27. > :01:32.Graham, is that anyone else's business what you are paid? I don't

:01:32. > :01:37.think we think so. It is my business. It is between you, your

:01:37. > :01:41.wife, the taxman... He has, that small group. So what about the

:01:41. > :01:46.public clamour for cheap executives to have a single figure disclosing

:01:46. > :01:50.everything they get? We need to keep things in perspective. If we

:01:50. > :01:53.want top talent striving top businesses, then we have to pay

:01:53. > :01:57.these guys the top salaries to make sure they are driving the right

:01:57. > :02:02.leadership. Businesses have been saying that for decades. The public

:02:02. > :02:08.is not buying it any more. They need to understand that in this

:02:08. > :02:14.very tough environment, leading a top corporation is tough. To get

:02:14. > :02:20.the top talent, you need to reward it. With talent like the Banks, we

:02:20. > :02:26.don't need it. It is a tough environment. We need to give these

:02:26. > :02:29.guys credit for leading these very large organisations through a very

:02:29. > :02:32.turbulent mark at. If you pay was public and people could look it up

:02:32. > :02:39.on a company website, would it change the amount of money you

:02:39. > :02:46.took? I don't think so. I think we have a very transparent process for

:02:46. > :02:54.each employee. We have a stock participation programme, so every

:02:54. > :03:00.employee is a shareholder, and we give bonuses for every employee. It

:03:00. > :03:04.is quite a transparent process. did very well not saying to me, it

:03:04. > :03:08.is none of your business. Why are we talking about bosses pay at this

:03:08. > :03:12.point in time? I think people are particularly upset because at the

:03:12. > :03:17.moment everybody is tightening their belts, everybody is really

:03:17. > :03:22.having a hard time, people are losing their jobs and are then you

:03:22. > :03:27.read about these people getting enormous sums of money, and it

:03:27. > :03:32.seems extraordinary they are getting this money, and, in

:03:32. > :03:36.particular, the gap is increasing between the amount they are getting

:03:36. > :03:43.to what an ordinary worker is getting. In old-fashioned terms,

:03:43. > :03:48.isn't that envy? And no. I think it is more than that. The gap is so

:03:48. > :03:53.wide and the differences are Bich, that it really is time to look at

:03:53. > :04:02.it properly. And true, why are people obsessed by bosses pay?

:04:02. > :04:06.think at the moment because we own the 80% of banks like RBS, we have

:04:06. > :04:13.a vested interest in knowing what the top people are being paid. That

:04:14. > :04:22.is companies which meet own because we had to. -- red is companies week

:04:22. > :04:28.only because we had to. In general terms, Vince Cable is going to roll

:04:28. > :04:32.up his plans because a lot of work has been done by the Commission on

:04:32. > :04:39.this, greater authority for the shareholders etc. That is not just

:04:39. > :04:42.the banks but everyone. I come from a private company background and

:04:42. > :04:47.therefore how we operate and pay people is possibly very different

:04:47. > :04:50.to the public sector. If the government were to take this a step

:04:50. > :04:59.further and say we will look at the pay of bosses in private companies

:04:59. > :05:07.as well. That would not worry me in the slightest. I am not earning

:05:07. > :05:12.millions of pounds. It's a private company, it always shows how much

:05:12. > :05:15.the highest paid director gets. you have a big gap in a business of

:05:15. > :05:21.your size? Can you have a big gap in what you are paid and what

:05:21. > :05:28.everybody else is paid? We do not have a lot gap. Why not? Because

:05:28. > :05:32.the travel industry is inherently badly paid. And I think it would be

:05:32. > :05:36.very wrong for there to be a massive difference. We all worked

:05:36. > :05:41.together a. The management team at nacelles consultants. So rather

:05:41. > :05:48.than high paid bosses, this would be high paid the motivating

:05:48. > :05:52.everybody else? I think so. Time for boom or bust. A quick flick

:05:52. > :05:59.through the news you heard hoped you had missed. Do not try this at

:05:59. > :06:02.home. This is Dr Megavolt. His mother calls him Richard. He put

:06:02. > :06:09.electronic it through its paces. That is one million volts of

:06:09. > :06:13.electricity. Somewhat amazingly, the hard drive survived, as did he.

:06:13. > :06:23.It has never been more popular with criminals, of the number of fakie

:06:23. > :06:27.red banknotes is up 5%. However, that does still leave a lot of

:06:28. > :06:32.genuine bank notes. A-level student rejected by

:06:32. > :06:39.university. What about the university being rejected by a

:06:39. > :06:42.student? Now that his man Bites Dog. Elly Nowell well has sent Oxford a

:06:42. > :06:45.letter marking its standards and rituals. She says it did not meet

:06:45. > :06:51.the standard of other universities and she is hoping to get in to

:06:51. > :06:56.study law, although probably somewhere else.

:06:56. > :07:00.The man with the faults, testing the product, how do you test a

:07:00. > :07:09.product in your industry? How do you know it is going to click with

:07:09. > :07:13.customers? First to fall, our business is where we take people to

:07:13. > :07:16.the world. We operate in 85 countries through the world and we

:07:16. > :07:21.have got to find the right accommodation for our guests, and

:07:21. > :07:25.find the right rooms for them to stay. Does this mean you are

:07:25. > :07:32.bouncing up and down on beds? We searching every single one of them,

:07:32. > :07:36.yes. But then there is another side of the business where we have our

:07:36. > :07:40.chalets and villas, operated by ourselves, and the product and

:07:40. > :07:45.there is to do with the team of people, the chefs, the nannies, the

:07:45. > :07:48.people driving you to and from the slopes. At going back to the old

:07:48. > :07:52.days, what we used to do when we were testing chefs, they would come

:07:53. > :07:58.around to my house and they would have to cook dinner before they

:07:58. > :08:04.would go back to the Alps. These days, there is a training presence

:08:04. > :08:08.that we go through. We have a ready, steady, Cook prices. At the end of

:08:08. > :08:13.the day, they hope they will get through, but not all of them do.

:08:14. > :08:19.Why can't we get jobs where top- class chefs turn up at our homes?

:08:19. > :08:23.I'm was thinking how unfair that is. That is brilliant! You now write

:08:23. > :08:27.books, how do you test your product? Good question. Halfway

:08:27. > :08:32.through the book, there is my e- mail address and I invite people to

:08:32. > :08:36.tell me what they think of it. Do You Ready listen if they say it is

:08:36. > :08:43.rubbish, even though you have crafted, sweated over it? Nobody

:08:43. > :08:50.has said it is rubbish it, which is good. How does Intel test its

:08:50. > :08:57.products? Hugely intensively. With a billion parts inside it, that

:08:57. > :09:02.takes a lot of testing. It is a huge amount of testing. Doesn't

:09:03. > :09:07.always work. You had that chip back in the mid-90s, the Pentium that

:09:07. > :09:13.couldn't do complicated maths. Our was very occasionally, things

:09:13. > :09:19.don't go planned. -- that was very occasionally. The key thing is how

:09:19. > :09:23.you respond to that and we learnt that we have to respond decisively,

:09:23. > :09:28.quickly, replace the products and customers understand the trust they

:09:28. > :09:33.have is fulfilled. When you talk about fake Euros, of the thing that

:09:33. > :09:42.goes through your mind is how technology and electronic

:09:42. > :09:46.communication is used to spread far bakery and scams. Actually, all of

:09:46. > :09:54.our lives are going on online, and I was looking on Twitter and I saw

:09:54. > :09:59.a bunch of tweets coming from Katie Price about quantative easing. I

:09:59. > :10:04.thought, it can't be heard, but it was. But not in the same context we

:10:04. > :10:14.would talk about it. We need to get sensitive about some of these fakes.

:10:14. > :10:17.It has taken me this long to get around the first explanation of

:10:17. > :10:24.quantitative easing. We need to book Katie Price if she is going to

:10:24. > :10:29.talk about it. She was actually advertising a chocolate bar. So, it

:10:29. > :10:36.was spin. Consumers need to be on their guard against affects all the

:10:36. > :10:39.time. There has right. It is up to the company is to build up our

:10:39. > :10:48.trust in them. We pay the money when it is good, they need to be

:10:48. > :10:52.there for us when things don't go foul wave. The A-level student,

:10:52. > :10:59.recruitment is about getting both sides to agree. That is right. I

:10:59. > :11:03.have to say she has shot herself in the foot. It is good to be feisty,

:11:03. > :11:08.it is fantastic and companies look for employees with an edge, a

:11:08. > :11:12.different angle, but this wasn't the wisest thing to do. I don't

:11:12. > :11:17.think she really knew what she was talking about. And drip, you talk

:11:17. > :11:23.about the chefs and how important they are, and how important it is

:11:23. > :11:28.to get the right person. How do you do it? Well, we have a very strong

:11:28. > :11:32.recruitment process. And we look as much as skill sets as to the

:11:32. > :11:36.character and charisma of the person, how charming they are, how

:11:36. > :11:43.they will get along with guests, because our business is about three

:11:43. > :11:49.words. A bit like Tony Blair. Education, education, education.

:11:49. > :11:54.Ours is servers, servers, servers. His our service as good as Asia?

:11:54. > :11:58.course. They do it brilliantly, but if you look at what we do and the

:11:58. > :12:03.number of staff to guests, we have a two-to-one ratio, mirroring the

:12:03. > :12:11.best they have been a show. your business in the UK is about

:12:11. > :12:17.sales? Have you ever had any one saying you are not good enough? Not

:12:17. > :12:20.so far, but it is an interesting thought. We are bringing in a lot

:12:20. > :12:25.of interns into the business and we would like to introduce these

:12:25. > :12:30.people into Intel and for them to try us and for us to try them.

:12:30. > :12:34.big news in technology was that Kodak is losing its business. It

:12:34. > :12:38.has filed for bankruptcy so it can restructure its finances. There is

:12:38. > :12:43.a business there was at the top of its game and did even had the

:12:43. > :12:48.technology on its own shelf that in the end was its undoing. Does that

:12:49. > :12:54.make you think that could happen to any of us? One of the founders of

:12:54. > :12:59.Intel coined the phrase, only the paranoid survive. Everything we do

:12:59. > :13:05.in Intel, we are always concerned about what his next, which is why

:13:05. > :13:15.we make sure we are at the front of tablets, smartphones, and a real

:13:15. > :13:16.

:13:17. > :13:20.buzz being given by the consumer electronics show. Fundamentally,

:13:21. > :13:25.continuous innovation is the watchword. Innovation costs money.

:13:25. > :13:31.How do you know that money is getting the results you expect from

:13:31. > :13:36.it and it is not disappearing down a hole? For Intel's prospective, we

:13:36. > :13:40.need to spend billions of dollars to make factories to make products,

:13:40. > :13:44.so it takes some bold leadership to put those bets on the table.

:13:44. > :13:49.Fortunately, we have done a great job so far in delivering great

:13:50. > :13:53.technology to the market, and as I look forward, again some fantastic

:13:53. > :14:00.technology heading towards consumers. What drives innovation?

:14:00. > :14:03.Is it you talking to customers and working out what they want

:14:03. > :14:08.computers to do? Is that the boffins in the lab saying, we have

:14:08. > :14:13.got this great thing, now we need to find a way to use it. It used to

:14:13. > :14:16.be the latter, but in the last 10 years, we have really had the

:14:17. > :14:22.former. Ethnographers it with real people all around the world and

:14:22. > :14:26.they look at how people use technology, on the bus, at work, at

:14:26. > :14:30.home. The number of remote controls they have. All those things build

:14:30. > :14:34.up a picture of what technology can do for consumers and businesses, so

:14:34. > :14:38.it is very much about listening to customers and consumers to

:14:38. > :14:43.understand what technology can do for them. But you don't make the

:14:43. > :14:48.computers? There are a couple of links there. With work closely with

:14:48. > :14:52.the computer manufacturers, so it is a partnership. We build the

:14:52. > :14:55.brains inside, but it needs to work in conjunction with the money

:14:56. > :15:01.packed wrestle with this new generation of Ultra books, they are

:15:01. > :15:05.super thin, and that can only happen if we work with the

:15:05. > :15:09.manufacturers. We provide all of the insides and worked together

:15:09. > :15:14.with the many factors closely to make sure the products are good.

:15:14. > :15:20.is their collaboration? At salute leave. With a new limited number of

:15:20. > :15:24.computer manufacturers? We share it at a global level. We have 100,000

:15:24. > :15:28.employees working with all of our customers because the diversity

:15:28. > :15:33.coming into the consumer electronics business environment is

:15:33. > :15:43.immense and you need to work with many varying partners to make sure

:15:43. > :15:45.

:15:45. > :15:51.you are looking at different parts I heard a teacher at say once that

:15:51. > :15:58.they are teaching for jobs that don't yet exist today. Had we make

:15:58. > :16:02.sure that students have the right tools? It is interesting, and it is

:16:02. > :16:06.a point that we take to heart, because we are a business built on

:16:06. > :16:10.science and technology. We work with governments around the world

:16:10. > :16:18.to create content in the classroom to allow kids all over the planet

:16:19. > :16:28.to be technology literate. Having those Foundation all elements are

:16:29. > :16:30.

:16:30. > :16:35.so important. Time moves on very quickly. Your typical laptop has

:16:35. > :16:45.the same amount of power as NASA did when they launched the space

:16:45. > :16:47.

:16:47. > :16:53.shuttle. How does business deal to you at the moment? Are we stalling?

:16:53. > :17:03.Of the swing -- shrinking? In our business, we have just had the best

:17:03. > :17:04.

:17:04. > :17:09.two weeks in the history of Scott Dan. -- Scott Dunn. How do you do

:17:10. > :17:17.that when time and money is so tight? Holidays are a necessary --

:17:17. > :17:23.necessity these days, and it is the third thing that people think about

:17:23. > :17:29.after mortgage and education. January is an import -- or four

:17:29. > :17:34.months, so you need something to look forward to. People want to get

:17:34. > :17:37.away and enjoy themselves. Even in these austere times, it is

:17:37. > :17:41.something worth saying over again, there are opportunities for growth

:17:41. > :17:48.if you can find them. That is right, and history shows that more

:17:48. > :17:52.businesses shut -- set-up in a recession, because there are more

:17:52. > :17:56.opportunities to do things more efficiently or more simply. It is a

:17:56. > :18:01.great thing -- great time for businesses to find a niche that

:18:01. > :18:09.works for them. More people are starting businesses. Is that

:18:09. > :18:13.because it is a better option than claiming unemployment benefit?

:18:13. > :18:18.people are in fear of their jobs. Actually, this is the moment,

:18:18. > :18:21.people are thinking they should go for it and take the plunge, because

:18:21. > :18:26.if there are not any jobs going around, it makes sense to do that.

:18:26. > :18:35.As long as they do it on a small scale and try it out, then it is

:18:36. > :18:41.fine. How do you make a million before lunch? You have really got

:18:41. > :18:47.to do it. You cannot be half- hearted about it. No. 2, you have

:18:47. > :18:55.to find something for the Brits there is a demand. You have to

:18:55. > :19:02.think, who is going to bite my product? You have to build up a lot

:19:02. > :19:07.of sleep and social life. -- give up a lot of sleep and social life.

:19:07. > :19:11.Who is actually going to buy it? How does that chime with your

:19:11. > :19:17.thinking? I think you definitely have to be passionate about what

:19:17. > :19:23.you're doing. We have to love what you are doing. When I set up Scott

:19:23. > :19:28.Dunn, it was incredibly difficult, but I had an Enterprise Allowance

:19:28. > :19:34.Scheme but paid �40 per week from the government, and a had a small

:19:34. > :19:39.loan from the bank, and that got me going, but, I am in a to agreement.

:19:39. > :19:45.We have to work incredibly hard an incredibly long hours. Many people

:19:45. > :19:49.set up and work from home in a shed. When I was out in the Alps for a

:19:49. > :19:56.couple of years, I had my mother set up in a bedroom as the back-

:19:56. > :20:02.office! You are able to give that little bit extra for your customers

:20:02. > :20:05.by rustling bacon across the Continent! Yes, because one of the

:20:05. > :20:14.things you have to do is differentiate yourself, and 25

:20:14. > :20:18.years ago, it was abysmal, but one thing we were doing is have a

:20:18. > :20:27.proper foe English breakfast, and so in the Alps, there was not

:20:27. > :20:33.proper bacon. So I bought an old Land Rover, put a roof rack on the

:20:33. > :20:38.top, and absolutely filled it with bacon! And roof-rack completely

:20:38. > :20:48.covered with bacon? Luckily, I got three customers, and doubles are

:20:48. > :20:48.

:20:48. > :20:58.not quite sure what I was going to say!, did you have them on the

:20:58. > :20:59.

:20:59. > :21:09.roof? At times like this, used -- cute retired and still -- stop

:21:09. > :21:12.

:21:12. > :21:15.working. Many people are carrying We have been told that we are

:21:15. > :21:19.living longer, but when it comes to working in your 60s and 70s, many

:21:19. > :21:28.firms may not want to take you want. So what do you do? Believe it or

:21:28. > :21:35.not, this Park in east London is run by a venture -- is a venture

:21:35. > :21:41.run by Terry Lyle Chris 72. I do anything's in the park and in the

:21:41. > :21:51.park office. I am here for nor married working day. -- Terry Lyle

:21:51. > :22:00.For the last four months, he has been working with eight social

:22:00. > :22:05.enterprise, the amazing. They have been working in Tower Hamlets. If

:22:05. > :22:10.you weren't doing this, what would you be doing? I am not idle. It is

:22:10. > :22:18.hard for me to answer the question, because I have been doing this four

:22:18. > :22:24.times inside retired! The Brit imagination has to roll-back, and

:22:24. > :22:30.it is hard to do something else. But I have learnt that Terry is not

:22:30. > :22:36.alone setting up a business later in life. We have 17 people on the

:22:36. > :22:44.books already. They are all quite buried in the skills they offer.

:22:44. > :22:54.Michael, the hairdresser, Andrew, St photography. We have Bernard

:22:54. > :22:55.

:22:55. > :23:00.Tate -- Bernadette. We were creating a service for older people.

:23:00. > :23:03.What we realised quite quickly is that we were meeting incredibly

:23:03. > :23:09.talented and passionate people with lots of skills he were able to

:23:09. > :23:14.share them, so they could be the provider as well as the consumer.

:23:14. > :23:18.An expert I spoke to said Britain will be surprised by old people

:23:18. > :23:22.working for themselves. They may not have any choice in the matter.

:23:22. > :23:27.If you are looking for a job, and you'd do not get one after six

:23:27. > :23:32.months, and we certainly hear people who have done that, if you

:23:32. > :23:38.are sensible, you look for other things. You can do something. It

:23:38. > :23:42.lends itself to self employment. you work past 65, what should you

:23:42. > :23:52.be aware of? If you are eligible for the state pension, you can draw

:23:52. > :24:00.it. If you don't draw it, you can increase it this value by 10 %

:24:00. > :24:08.every year. Terry is proof that with plenty of enthusiasm, anything

:24:08. > :24:14.is possible. Good job they did not pull the other way! Next week, it