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Mind The Cap

Taking a page out of the major US sports leagues' playbook, Alistair Darling is entertaining a proposal to install a salary cap for financial services firms. The plan, in addition to imposing Nordic tax levels of 90% on Andrew Hall type bonuses, would create a "maximum wage ration" which would effectively link the compensation of senior MDs to first year analysts. We can only hope the plan would include another US creation that would effectively communicate the typical level of disdain for such arrangements and reinforce the distinction between the 'haves' and the 'have nots'- the luxury tax.