A cap on earnings or Capitalisation of Earnings refers to a policy or regulation that sets an upper limit on the amount of income an individual or entity can earn within a certain period. This concept is often discussed in various contexts, such as executive compensation, social welfare benefits, or professional sports salaries.
A cap on earnings or Capitalisation of Earnings refers to a policy or regulation that sets an upper limit on the amount of income an individual or entity can earn within a certain period. This concept is often discussed in various contexts, such as executive compensation, social welfare benefits, or professional sports salaries.
In executive pay, a cap may be imposed to control excessive remuneration and align the interests of executives with shareholders and the broader community.
This can be part of a broader corporate governance strategy aimed at ensuring that pay is commensurate with company performance and sustainable over the long term.
A cap on earnings or Capitalisation of Earnings refers to a policy or regulation that sets an upper limit on the amount of income an individual or entity can earn within a certain period. This concept is often discussed in various contexts, such as executive compensation, social welfare benefits, or professional sports salaries.