MoneySaving Poll: Should the UK impose a maximum cap on salaries?

kathrynha · 11 January 2017 at 10:53AM

Part of me initially says yes, it's a good idea, as some people earn a hideous amount, but then it wouldn't work.
You would end up with capped salaries, but then big bonuses, and if cash bonuses weren't allowed they would be material bonuses (cars, holidays, houses, etc)

But something does need to be done about the growing difference between high and low wages.

I read somewhere that in the 70s(?) wages of bosses were on average 40 times the wages of the lowest paid in the same business and now it 400 times.

I think there needs to be a cap on the number of multiples between the lowest and highest paid people in a business. Then bosses are fine to give themselves a big wage as long as those below one get one too.

Might also need a rule in there about contracted out work too. For example if you contract out your cleaning, those cleaners wages should still be included in the calculation.

takman · 11 January 2017 at 11:04AM

ashleyriot wrote: »

The CEO's salary should be a maximum of x multiple of the lowest worker's salary.

That way, if the CEO receives a pay rise then so should those at the bottom.

So let's say the company is doing really well due to the managment of the CEO why should people who havnt helped the company also get a payrise.

How would you like it if you did a really good job at work and saved the company lots of money. They decide to give you a payrise but it won't be much because they also have to give everyone else who works with you a payrise at the same time, even though they had no input in the project.

Seholly · 11 January 2017 at 11:09AM

This poll misinterprets what Corbyn is suggesting. He doesn't state a set figure for the top amount - which would be impossible to implement and unworkable across different industries. He is advocating a ratio between the top and bottom earners in companies that receive tax payer funding which would include public sector and any companies tendering for public contracts. This is a more realistic proposition. However, private companies would still try to get round it by topping up salaries with other rewards.

antenna · 11 January 2017 at 11:13AM

I am against corbyns cap..........makes him look like the trotsky he is.

anotheruser · 11 January 2017 at 11:32AM

It's a shame there isn't a 15-year plan so all businesses in the UK reform and become not for profit.

Why do they need to make any profit? If nobody made profit, then surely we'd have huge amounts of cash that we can use to build more hospitals, fix the railways, whatever...

Kabloomybuzz · 11 January 2017 at 11:50AM

I think instead of a cap on the highest that can be earned, every company should have to pay their lowest paid workers a set percentage of the highest paid person in the company (5-10%)... It would probably see CEOs and top level managers reducing their salaries so they don't have to pay so much in staffing while still benefiting the lowest paid staff with a pay rise.

ashleyriot · 11 January 2017 at 1:59PM

takman wrote: »

So let's say the company is doing really well due to the managment of the CEO why should people who havnt helped the company also get a payrise.

How would you like it if you did a really good job at work and saved the company lots of money. They decide to give you a payrise but it won't be much because they also have to give everyone else who works with you a payrise at the same time, even though they had no input in the project.

Hmmm, your point is valid but my challenge back is that if there are people in a company who are not working (in their own job position) for the success of their employer, then that's something that performance management should highlight.

TBagpuss · 11 January 2017 at 2:45PM

I'm not sure a cap is workable, unless the cap is so high it is meaningless for the majority of firms. But I do think that rules about the gap between the highest and lowest paid in an organisation is reasonable, and that that should be based on total remuneration, not merely salary, so it taks into account things such as pensions, share options, perks like comapny cars and health instuance etc.

So a limit on the multipal makes more sense to me. That way, they can pay vast sums to the top people but it would pull up the wages for lower paid workers if they did.

bordercars · 11 January 2017 at 6:05PM

Im 57, I voted Yes to a cap, of £28k, cut all the MP's wages, and im going on a reduced hours week to earn my £28k and then im sitting on my arris for 4 days a week.

Corbyn your a joke

Seakay · 11 January 2017 at 8:12PM

I think that no one in a company should earn more than, say, 7 times as much as the lowest paid employee or sub contractor (so no saying cleaners don't count because they work for another company which has the contract). A cap doesn't work because it would have to be re negotiated every year. I can't answer the survey because the options are "no" or a cap amount

MoneySaving Poll: Should the UK impose a maximum cap on salaries?

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