The problem lies in creating a solution less flawed and distrusted than private-sector bonuses, which are often divorced from tangible proof of rising performance. In assessing the value of a senior health-service manager or council chief, for example, the line between core competence and bonus-worthy brilliance might be hard to define. University vice-chancellors — in whose remuneration the government has an indirect say — might be judged largely by their success in attracting able students from poorer backgrounds (a goal of government policy). However laudable that aim, using it to determine vice-chancellors’ pay might distort admissions decisions.
— “Public Sector Pay: The Cap Doesn’t Fit”
