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Cap on Earnings

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.

What is Cap on Earnings?

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.

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