After the debacle of MP's and their "expenses claims" in an effort to gain favour with the public. Our Con-a-Lib government has now come up with a limit to set a fair wage for those at the top in the public sector. Top pay in the public sector should not normally be more than 20 times that of the lowest paid worker in any public body. The idea has been put forward by Will Hutton of the Work Foundation.
The government asked Mr Hutton to investigate the issue because of concern that the rise in top executive pay in the public sector was unfair.
Mr Hutton said “There had been a "kind of arms race" in private sector pay, and that there is a risk that the same kind of race could happen in the public sector. There are significant upward pressures on senior pay and, before the pay freeze, some increasingly eye-catching settlements."
The new BW mission statement:
"We were going to define the problem but we
thought it was simpler to re-define success'
Mr Hutton said "There is a strong case for public sector organisations having to comply with, or explain why they do not comply with, a maximum pay multiple, such as 20:1. This would demonstrate fairness by reassuring public opinion, address a problem of collective action across remuneration committees, and benefit organisations' productivity. The range of top pay deals across the public sector has little coherence or relationship to the public's priorities in generating genuine public value."
Mr Hutton's final recommendations will be published in March 2011. I wonder what the impact will be for the BW board?
Later....
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