The new Lloyds Bank boss is to get an annual package of £13m, with a £4m ‘golden hello’, (The Guardian 31st  March  2011). In his interview with Charles Moore reported in the Daily Telegraph earlier the same month  (5th March ) , Mervyn King, the Governor of the Bank of England, pointed out  that  manufacturing..

Conventional economic theory claims that the pay that people receive is mainly related to their productivity – people are paid what they are worth. The theory has been disproved many times by the collection and deployment of empirical evidence – such as that compiled by Guy Routh.. Yet this theory remains dominant in discourse amongst the population in general and amongst politicians. The most blatant example is the recent case of the bankers who nearly succeeded in disrupting the capitalist world’s financial system. It is widely believed that these same bankers are still worth the enormous pay and bonuses they award themselves. Governments whose members are reasonably sane – if often inept – are scared to limit or tax heavily the pay and bonuses which senior bankers pay themselves for fear that these bankers would emigrate and deprive their countries of the very valuable services which they provide. Few people seem to recognise that the principal reason why senior bankers are paid huge salaries and bonuses is because they are greedy people who control enormous funds.