Is Nick Clegg stupid or does he think we are?

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The Guardian's reporting:

Nick Clegg has committed the government to a crackdown on excessive executive pay, saying that austerity in the public sector had to be balanced by curbs on "irresponsible and unjustifiable" pay rises in the private sector.

The deputy prime minister said that ministers would publish firm proposals next month, and the government was willing to legislate if necessary on measures that could include forcing firms to let workers sit on the remuneration committees setting pay rates for top executives

I'm all for employees on the board of a company - and the remuneration committee. I have been for a long time. But I have to presume Nick Clegg is either stupid or thinks we are if he really thinks this will change top pay.

The worker on the committee will always be outnumbered - probably 4 to 1 at least on most such committees. What chance have they got of changing things? About the square toot of not a lot I'd say.

In which case real change is needed to stop the abuse that is going on that is destroying capitalism from within by spreading corruption like a cancer within it.

Four things can work.

First, a 'top to bottom' pay ratio.

Second, banning all corporate tax relief on salary and remuneration packages over £250,000, increasing the cost of paying them and removing tax[ayer subsidy from high pay.

Third, and most important, banning incentives that relate to post tax cash flow earnings that have the effect of encouraging tax avoidance by multinational corporations. These have explained the boom in tax abuse.

Last, banning of bonuses, however earned of more than 100% basic pay (itself pegged by an earnings ratio cap) by applying a 100% tax on all bonuses.

Those are real policies to end abuse.

Clegg's is not.