Corbyn maximum wage proposal backfires

"The original Jeremy Corbyn is dead, long live Jeremy Corbyn 2.0," says the FT's Sebastian Payne. The Labour leader has "relaunched his attempts to be prime minster" by proposing a maximum wage cap, though it remains "more an aspiration than a fully fledged new policy". That's just as well, since it "would be almost impossible to implement".

Companies would find ways round it, largely through an increase in benefits-in-kind. Even if a cap was properly enforced, "those seeking high-wage employment will simply hop on a flight and go elsewhere". However, "many voters feel increasingly hostile to elites so the idea of clamping down on their perceived huge pay packets will be appealing to some".

It is certainly "hard to defend the pay gap between many top British executives and their employees", agrees The Times. Indeed, in the past two decades the ratio of CEO pay to the average worker has "trebled to more than 170". Yet there is no discernible link between lavishly paid bosses and the investment returns to their companies. What's more, "executives continue to pocket generous payouts even when removed for poor leadership". The government should require firms to publish their pay gap ratios.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Greater transparency on this front should help ensure that "genuine wealth creators would still command top dollar" while "overpaid placeholders would not". Corbyn, meanwhile, "needs a clear vision backed up with clear messaging", not random proposals thrown into the ether, says Owen Jones in The Guardian. The pay cap idea just distracted people from the crisis in the NHS. Thanks to Corbyn's muddled messaging, the Tories "are getting away with it all".