Undeserving causes 2

April 29, 2010

The idea that the ratio of the highest and lowest pay within an organisation should be limited seems to me to be a good one (Letters, 22 April). However, a constant, as suggested by Ken Smith, would be too rigid. I suggest a logarithmic relationship would better reflect the increased responsibility of leading a large organisation.

The ratio should be 1+ln(N), where ln is the natural logarithm and N is the number of people. N includes both staff and contractors, to avoid distortions owing to outsourcing. For 50 people, this gives a ratio of 4:9; 5,000 people would yield 9:5. Of course, students would not be included in N as they are merely customers (or so we are told).

Dave Kimber, Cambridgeshire.

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