First clear signals have to be given as to what is considered fair pay in the UK. This measure would deliver that message – and I defy anyone to say pay of above £265,000 is needed.
PS I am aware that this cap would not apply to rewards paid by owner directors as dividends in private companies – but then these are, in economic terms, not salaries but profit distributions and so are not the focus of the policy I am suggesting, which is meant to address excess salary payments.
So I would predict a flight of business talent from publicly traded companies to private equity myself. Plus an exodus of talented foreigners from the country. But then what do I know, I’m not a retired accountant, am I?