Extreme wealth has become one of the most corrosive forces of our time - undermining economies, fraying social contracts and weakening the systems we all depend on. And whether we realise it or not, as investors we are all entangled in the mechanisms that sustain it.

In today’s financial world, making money with money is seen as a neutral - even admirable - pursuit. Questioning the soaring pay of business elites is often treated as taboo. But we must push back against this silence. Because all money has impact - not only in what it finances, but also in where it ends up.

We routinely talk about the positive impact of investments - supporting renewable energy, affordable housing or inclusive innovation. We also highlight the harm to avoid: fossil fuels, weapons, forced labour, deforestation. These impacts are measured in emissions, water use and human rights violations.

But there’s a more structural, insidious form of impact that often goes unexamined: the deepening of inequality through capital allocation itself.

Over recent decades, the pay packets of CEOs and major shareholders have ballooned. In some countries, the ratio between executive and worker pay is hundreds to one. The result isn’t just individual enrichment - it’s a system-wide shift in how rewards are distributed. It’s no coincidence that those same countries are now grappling with political polarisation, eroding public trust and fraying social cohesion. The presence of 13 billionaires in the Trump administration isn’t incidental - it is emblematic of how wealth buys power.

Investors, whether institutions or individuals, are not bystanders. Their capital shapes the system. And too often, it flows disproportionately to those who already have the most.

Yes, the pursuit of returns is a legitimate goal. And those with wealth tend to achieve better returns - thanks to superior advice, greater diversification and a higher tolerance for risk. Markets, both listed and private, have delivered handsomely for those with access. That, in itself, is not the issue - as long as the gains are not coming at excessive social cost. But all too often, they do.

The system doesn’t stop at making money for investors. It also enriches those in charge of the companies - CEOs, founders, major shareholders. Their incentives are often linked directly to the share price, so when companies buy back stock to boost their market value, it’s not just the investors who gain. Executives, paid in shares and options, see their compensation rise in tandem.

It’s a mutually reinforcing loop. And it’s become a runaway engine.

This reinforcing loop is accelerated by increasing market power of (listed) companies. A significant share of investor returns now flows through powerful tech oligopolies - companies that dominate not only their sectors, but entire ecosystems. These firms generate enormous profits, partly because of their efficiency and reach, but also because of their market power. In many cases, competition has been neutralised, innovation stifled and consumers left with few choices and inflated prices. This is another face of inequality.

Here lies the crux: investors can no longer afford to remain neutral. They are not mere shareholders; they are stewards. With ownership comes influence, and with influence comes responsibility.

Excessive executive compensation isn’t just a corporate governance concern - it’s a societal one. It demoralises workers, undermines solidarity and erodes the idea that companies serve multiple stakeholders, not just shareholders.

And the consequences aren’t abstract. Extreme inequality corrodes democracy, fuels political extremism and weakens institutional performance. In such conditions, even the most “impactful” investments risk losing meaning.

When executive pay dwarfs worker wages, solidarity breaks down. When profits rely on monopolistic control, markets suffer. When capital continually flows upward, democracy decays.

All money has impact. And when too much of it flows to too few, the system itself begins to fail. It’s time for investors to recognise this -and act accordingly.