It’s never what it says it is. If you chose to pay yourself a million pounds, the only way to do it would either be self-employed or own the company outright. The latter is a risky option since it also means that you’ll ultimately be responsible for any losses or liabilities. Just look at Richard Branson and the treatment of his airline company. Some employers ask potential employees to name their salary at the interview process to see if there’s a possibility of hiring someone for below the going rate. Hopefully those who realise that they’re getting undercut will have their own agenda or are able to rectify it later. Some employers leave it to a management committee of their peers, and in larger organisations it’s left to the union. It would be difficult for a body to set an individual’s salary solely on hearsay. Performance indicators would have to be evaluated first. But in a sense, people do set their own pay. You’re most likely to be offered a sum with a job offer and it’s on you as to whether you’ll accept or reject the job and pay, or choose another.
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