Clobber the super-rich

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THE are many myths in politics that the Lib Dems can be trusted on tuition fees ... or behind the wheel of a car, for example, and that the NHS is safe in Tory hands.

However, one of the biggest myths of all has finally been busted.

It is the UK companies that have to offer huge financial incentives, including obscene bonuses, to stop top executives being poached by foreign competitors.

The High Pay Centre has proven that the real motivation is business fat cats setting benchmarks for their cronies to their own benefit. The motivation is greed, pure and simple.

The inquiry found that less than one per cent of chief executives were tempted abroad by better offers.

Only four chief executives out of 489 were poached while in North America, Japan, Latin America and Eastern Europe, not a single CEO was appointed from outside the country where the company is based.

Deborah Hargreaves, director of the High Pay Centre, said: “Huge executive pay packages can no longer be justified on the basis that there is a competitive international market for chief executives.

“Shareholders should be wary of the person who is incentivised purely by the bonus – as this is what led us into the financial crisis we see today.”

An excellent point well made.

Multi-million salaries and massive bonuses – often to reward failure – are particularly obscene during a triple-dip recession caused by many of the same in business, banks, utilities, and City institutions.

This is why I support Labour leader Ed Miliband’s plan to bring back the lower 10p tax threshold to help the low paid, and clobber the super-rich with a mansion tax.