Capping bosses’ salaries will not raise salaries of people at the bottom | Kate Andrews writes for City AM

Head of Communications Kate Andrews writes for City AM:

Today’s briefing paper from the High Pay Centre (HPC) has zoned in on the gap between FTSE 100 chief executive pay and the average salary of UK workers in 2014: 183/1.

Perhaps it is the HPC’s emphasis – or perhaps it is the world’s recent focus on inequality - that has most people, in the media and elsewhere, focused on this divide. The assumption is that high executive pay is costing lower earners a pay rise, and that condoning people getting rich at the top is an endorsement of keeping people poor at the bottom.

But one does not cause the other; and while it is crucial that we tackle in-work poverty and address long-term low pay, capping executive pay will not raise the salaries of people at the bottom. Indeed, this could lead to negative consequences of its own.

Read the full comment piece here.