B416 - Salary Cap limit Bill
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Re: B416 - Salary Cap limit BillDefinitely do not support the Act; this government cannot be seen to be in opposition of success. £520,000 (which I believe is 20x the national average wage) is actually very little money compared to what some corporate high-earners expect. I don't usually agree with this argument, but this time it is true that businesses will flee to avoid these restrictions - the provisions here would make it vastly more profitable for them to leave.
Also, this bill is really pointless. It will not prevent people becoming filthy rich - the stock market will still exist, as will asset trading etc. Why target employees and not the actual richest?
Can I also point out that this would have a devastating effect on our income tax revenue. With companies having so much excess money, which they're unlikely to want to invest, they're just going to throw it abroad either into expansion (think new skyscrapers in Shanghai!) or massive tax-free savings pots in Zurich.
There is also a myriad of ways that this could be avoided. Corporations like banks etc. will just stop hiring low paid workers, or even those in the middle-pay bracket. Instead they'll hire from agencies for jobs like security guards, cleaners, administrative staff etc. You could easily see an investment bank where the average wage is £200k because all lower down employees no longer work "for them".
Finally, does 'remunerations' include payment in stocks, assets and shares?
Sorry to go against Labour on this one, I think most RL MPs and members would.Last edited by JPKC; 20-02-2012 at 23:32. -
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Re: B416 - Salary Cap limit BillI agree that some corporate salary/bonus packages are ridiculous, especially when a corporation is performing poorly.
But you can't just arbitrarily limit salaries to X amount as some sort of protest against bankers. Successful, profitable, private companies should be able to reward their employees however they want, and this wouldn't allow that. It would simply drive business talent abroad and make companies think twice about being based in the UK or investing money here.Last edited by Student2806; 21-02-2012 at 05:36. -
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Re: B416 - Salary Cap limit BillGoing on what Student2806 said, I think you should only limit the salaries of CEOs and board members, IF the business is not doing as well as what is expected of them - similar to the case with Lloyds Banking Group - especially when the Taxpayer's money is on the line.
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Re: B416 - Salary Cap limit BillAnd Network Rail, Who are performing badly according to the ORR. The RL Government mentioned they were going to block it and NR finally gave in.(Original post by thegodofgod)
Going on what Student2806 said, I think you should only limit the salaries of CEOs and board members, IF the business is not doing as well as what is expected of them - similar to the case with Lloyds Banking Group - especially when the Taxpayer's money is on the line.Last edited by Morgsie; 20-02-2012 at 23:54. -
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Re: B416 - Salary Cap limit BillI just realised whom your display picture is of(Original post by Morgsie)
And Network Rail, Who are performing badly according to the ORR. The RL Government mentioned they were going to block it and NR finally gave in.
http://www.bbc.co.uk/news/uk-politics-16901587
"Sir David and six other directors had been eligible to receive up to 60% of their annual salaries in one-off performance-related bonuses as as well as longer-term bonuses of up to 500% after five years if certain targets were met."
Ridiculous
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Re: B416 - Salary Cap limit BillWhen will you lefties learn that these kind of measures portray the UK as being hostile to business.
The day this implemented we would see some businesses leave, many directors leave and then afterward we would experience a massive drop in foreign investment.
We live in a globalized economy and a lack of foreign investment would be a very bad thing. -
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Re: B416 - Salary Cap limit BillWhilst I agree with everything you've said, I hate these kinds of arguments - it's like when I find myself saying "but if you lower taxes, you can still raise more revenue later a la Thatcher, see Laffer curve!" - the point shouldn't be that it's impractical to have a salary cap like this (or that it's actually beneficial from a public spending POV to lower tax) - that shouldn't be the point! We shouldn't WANT the have a salary cap, even if its effect was negligible. It's the government interfering in the contracts of private people and entities, and it has no place whatsoever doing so. **** off out of it, government. Stick to building roads and buying bombs if you insist. Leave everything else alone.(Original post by Rakas21)
When will you lefties learn that these kind of measures portray the UK as being hostile to business.
The day this implemented we would see some businesses leave, many directors leave and then afterward we would experience a massive drop in foreign investment.
We live in a globalized economy and a lack of foreign investment would be a very bad thing. -
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Re: B416 - Salary Cap limit BillYes, government interference in the market is rarely a good thing.(Original post by CyclopsRock)
Whilst I agree with everything you've said, I hate these kinds of arguments - it's like when I find myself saying "but if you lower taxes, you can still raise more revenue later a la Thatcher, see Laffer curve!" - the point shouldn't be that it's impractical to have a salary cap like this (or that it's actually beneficial from a public spending POV to lower tax) - that shouldn't be the point! We shouldn't WANT the have a salary cap, even if its effect was negligible. It's the government interfering in the contracts of private people and entities, and it has no place whatsoever doing so. **** off out of it, government. Stick to building roads and buying bombs if you insist. Leave everything else alone.
I am not so against caps in the public sector or even semi-organisations such as Network Rail but pure private sector businesses should not be told how much they can pay somebody just because of envy from those who cannot attain those riches.
I ask the government what benefit this will bring? How will paying somebody less help those at the bottom as i suspect you will say? This bill achieves nothing other than to harm the rich and appease the poor.
I will even go as far to say that this bill is nothing but populist propaganda designed to win votes rather than achieve anything. -
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Re: B416 - Salary Cap limit BillPlease note that not all lefties are in support of this Act. Most of us want a fairer society, which is not the same as wanting to tentacle rape business.(Original post by Rakas21)
When will you lefties learn that these kind of measures portray the UK as being hostile to business.
The day this implemented we would see some businesses leave, many directors leave and then afterward we would experience a massive drop in foreign investment.
We live in a globalized economy and a lack of foreign investment would be a very bad thing. -
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Re: B416 - Salary Cap limit BillLol, what a description.(Original post by JPKC)
Please note that not all lefties are in support of this Act. Most of us want a fairer society, which is not the same as wanting to tentacle rape business.
And noted.
