The Financial Times (17th September) has published a chart comparing the pay of leading central bankers around the world- usually people in charge of the State bank.
They have looked at salaries but the chart is based on a comparison between how multiples of the average wage each is paid. Top is Italian banker Ignazio Visco who earns 17 times the average wage. Next is Bank of Engand boss Andrew Bailey who earns 14 times the average wage.
Given the Chancellor is reported to be looking to lift the cap on top bankers bonuses he might want to have a look at the chart. It is of course not just bankers but a much wider problem. 40 years ago someone starting a job could see how their salary related to those at the top and the route,albeit one rarely travelled, to get somewhere near that level. That link is broken.
The FT comments:
wage indexation is less common than in the past. So is union membership. These factors lessen of a self-reinforcing wage-price spiral. But labour markets are tight. Businesses with pricing power will be able to pass wage increases on to customers. Central bankers wishing to earn their keep need to crack that conundrum rather than chastise workers asking for more.
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