The Prime Minister indicates he will attempt to cap executive pay at the forthcoming G20 summit. He said that pay should reflect "hard work" and values rather than risk-taking.
"Most people want business to have the same values as they practise in their everyday life," he said. "People would rather reward hard work rather than risk-taking. They want to support enterprise and not excess. They want to support people that take responsibility and not run away from it."
The reason we hire managers is to take risks on our behalf. To essay ou capital into the turbulent seas of commerce.
Of course we don\’t want to just pay for hard work, for time serving. We would much rather pay for success, for risks aptly and ably taken. As Napoleon didn\’t say, we\’d happily pay purely for luck, that rarest of attributes.
What is the Scotchman talking about?