HM Treasury

Independent reviews

Call for Evidence: suggested questions

19 July 2010

It would be helpful if representations could be made in response to the following questions. Please address whichever questions are relevant to your areas of experience and add additional comments or attach further documents where appropriate.

Implementing fairness

1. Do you agree that the organising principle of the Review should be that for pay to be fair it must be proportional to the effort of the individual and the value of the work done?
2. What should Government’s role be in promoting fairness in public sector pay?
3. Do you agree with a pay differential between highest and lowest earners of 20:1 as a means of promoting pay fairness?  If not, what is your preferred alternative?
4. How important do you consider the process by which pay is determined to delivering fairness?
5. From the perspective of your sector / area of expertise, do you have any other comments on the approach this Review is taking?

Benefits of fairness

6. Do you have any evidence that fair pay, or a perception of fair pay, has an impact on productivity or brings other benefits to organisations and their staff?
7. Do you believe that there could be negative effects of a pay ratio, or other means of promoting fair pay?
8. What relationship do you think there is between fairness in pay and innovation and entrepreneurship?

Public sector

9. In the public sector, do you know of any examples of high pay differentials, or executive pay that could otherwise be considered unfair?  What is your perception of the trend in pay differentials over time?
10. Are public sector leaders able to have the impact over their organisations that would warrant high pay differentials?
11. How could a 20:1 pay ratio be enforced in the public sector?
12. Should there be exceptions to a 20:1 pay ratio within the public sector, and where and why?
13. How important is remuneration in attracting top candidates to executive positions in the public sector?

Private sector

14. Do you have any examples of high pay differentials within private sector organisations? 
15. Do you think that high pay differentials (between highest and lowest earners in the organisation, and between senior management) are beneficial or detrimental to senior management behaviour and wider business performance?
16. What relationship do you think there is between executive pay in the private sector and the competitiveness of UK businesses?
Interaction between private and public sectors
17. How influenced is the public sector by private sector pay practices, and vice versa?
18. Do the public sector and private sector compete for the same people, and if so in which professions / levels of seniority / geographical areas?
19. Should pay be set differently in the public sector to the private sector?
20. Can and should the public sector compete with the private sector on executive pay? Are there other means by which it can attract top candidates?

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