U.K. government: Don’t you dare reduce those banker’s salaries!

Posted by Marc Hodak on January 27, 2010 under Executive compensation, Reporting on pay | Read the First Comment

…or else we’ll tax ’em!

British officials have blessed the shift to higher salaries, saying they help rein in risky decision-making. But the salary increases must be permanent, or they will be taxed like a bonus. “A significant, one-off leap in salary is something we’ll be keeping an eye on,” says Paul Franklin, a spokesman for the U.K.’s tax service.

Their concern about bankers salaries is kind of touching, don’t you think.  It contrasts to the obsession in the rest of this article about how banks keep trying to get more money into the pockets of their employees.