Clegg failed to impress this morning on the Today programme over controlling top pay.I regret that asking shareholders to be more active is simply not the answer. Shareholders want the maximum return on their investment. they are here today and gone tomorrow-and in the new electronic age sometimes they only stay a nano second.
If we are to control top pay then we have to revert to the Liberal Party policy of giving employees at least the same rights as share holders. Personally I'd prefer our template to be closer to the Mondragon model which so impressed Jo Grimond,. So lets start proposing that as a minimum employees should have a share in the ownership and profits of all enterprises above a certain limit and rights to be on the board determining strategy and pay.
If you look at the Employee Ownership sector of the economy -including financial Mutuals - they have achieved a better control of executive pay as well as the other benefits of spreading asset ownership, better productivity, longterm decision making, happy workforces etc