This story in the BBC about boadroom pay rather worries me. While I have a great deal of sympathy with Nick Clegg's frustration at top managers getting big rewards for failure I'm not convinced it is something the government should intervene in directly.
The people who should decide who is on the board, and therefore the renumeration committees that set pay, are the shareholders. Shareholders have a stake in the company's success or failure, if they feel the need to get a big salaried, high flyer to run the company is it right for the government to tell them they can't? If government policy prevents a preferred candidate getting recruited can the company get some form of recourse if the second preference candidate turns out to be a flop?
The government should not dictate how the private sector reward their top talent. How would Manchester United fans feel if the government prevented Sir Alex Ferguson from paying Wayne Rooney the money he felt he deserved?
Labour want to legislate to force companies to have members of staff on the renumeration committee. Many companies do this already and I can see lots of advantages in doing so, but once again I feel very uncomfortable with the idea of forcing all companies to do something just because I think it's a good idea.
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