“Transparency” and “disclosure” are the watchwords of the credit crunch, and when it comes to compensation that seems to mean more reporting of what is paid to “top earners” outside the boardroom.
Some regulators have even gone so far as to suggest that well paid individuals should be named (addresses anyone?)
There are lessons to be learned here from Japan. Back in the day, the Japanese tax authorities would publish announcements in the newspapers listing the countries’ biggest personal tax payers with a “thank you” for the large amounts paid.
One of Banquo’s colleagues routinely made this list but somehow scraped in at the bottom. He also received a letter from the tax authorities wishing him health and continued prosperity. What impact would this approach have on western taxpayers?
Banquo knows many whose approach would be “if I’m going to be on the list I’m going to make sure I’m above her“, and if the incentive for a top place was a letter from Tim Geithner or a seat in the House of Lords, maybe we can put a dent in the budget deficit.
Banquo is still an active investor so will declare his financial interest where appropriate in any blog post.
