Click Fraud Protection

Connecting...

UK companies to publish pay ratios between CEOs and workers

News | Pay | Executive | IoD

W1siziisijiwmtcvmdgvmzevmdgvmtivmtgvnjmyl21pbmr0agvnyxatbwlulnbuzyjdlfsiccisinrodw1iiiwimtawmhg0mdajil1d

Companies publicly listed in the UK are going to be expected to make public how much their chief executives are paid, compared to their average worker, under new laws.

UK business secretary Greg Clark has set out the government's corporate governance reforms, which have been designed to “enhance the public's trust in business”. This is to be achieved through boosting transparency.

The laws will also force all listed companies with significant shareholder opposition to executive pay packages to have their names published on a new public register. The government said that new measures will also be introduced to ensure the voice of employees is heard in the boardroom.

UK companies are going to have to reveal the pay ratios between chief executives and the average worker, under a package of government reforms.

According to the Department for Business, Energy and Industrial Strategy, the world’s first public register of listed companies where a fifth of investors have objected to executive annual pay packages will be set up in the autumn.

Mr Clark said that the UK has a reputation for being a dependable and confident place in which to do business, adding that the country’s legal system, framework of company law and standards of corporate governance “have long been admired around the world”.

He went on to say: “We have maintained such a reputation by keeping our corporate governance framework under review. Today’s reforms will build on our strong reputation and ensure our largest companies are more transparent and accountable to their employees and shareholders.”

The proposals have been welcomed by the Institute of Directors. Its director general Stephen Martin said the organisation was “particularly pleased that there will be a code for large private businesses, as the principles of good governance should extend beyond the companies listed on the stock market”.

Meanwhile, Paul Drechsler, president of the Confederation of British Industry, said: “We know that how companies act and behave determines the way people think about business.

“Companies take this seriously and we look forward to working closely with the government to ensure the UK maintains its reputation as a global leader in this field and as a primary location for international investment.”

However, the Trades Union Congress (TUC) has called the reforms “feeble”. TUC general secretary Frances O'Grady said: "This is a far cry from Theresa May’s promise to crackdown on corporate excess. It’s a feeble proposal, spelling business as usual for boardrooms across Britain.”

The TUC said it welcomed the new proposal, but is concerned that the pay ratio will be calculated between executive salaries and the average worker, not between executives and the lowest-paid workers.


Posted by Jon Aspinell on 31st August 2017

SHARE

RECENT CONTENT
W1siziisijiwmtcvmdcvmtavmtavndcvntgvmjy1l1cxc2laaulzswpjd01uy3znrff2twprdk1urxznelv2turrdk5etxhmm2rwy21vdwfulmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mfx1mdazyyjdxq
VACANCY

Technical Support (Print)

Leicester

£30,000

Do you have a degree or HNC in Electronic or Electrical Engineering? Are you keen to build a career as a customer fac...

READ MORE
W1siziisijiwmtcvmdcvmtavmtavndcvntgvmjy1l1cxc2laaulzswpjd01uy3znrff2twprdk1urxznelv2turrdk5etxhmm2rwy21vdwfulmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mfx1mdazyyjdxq
VACANCY

Technical Support (Print)

Birmingham / Homebased

£30,000

Do you have a degree or HNC in Electronic or Electrical Engineering? Are you keen to build a career as a customer fac...

READ MORE
W1siziisijiwmtcvmdcvmtavmtavndcvntgvmjy1l1cxc2laaulzswpjd01uy3znrff2twprdk1urxznelv2turrdk5etxhmm2rwy21vdwfulmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mfx1mdazyyjdxq
VACANCY

Graduate Web Developer

Newcastle

£25,000

The Ashdown Group has been engaged by a market leading national organisation to assist them in their search for a gra...

READ MORE
W1siziisijiwmtcvmdqvmjqvmtevmzmvndavnty5l21hcmsxlmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mfx1mdazyyjdxq
VACANCY

Events Assistant

City of London, London

£24,500 per annum

A highly successful, international business are looking for an Events Assistant to join their Events and Marketing te...

READ MORE
W1siziisijiwmtcvmdqvmjqvmtevmzmvndavnty5l21hcmsxlmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mfx1mdazyyjdxq
VACANCY

Digital Campaigns Project Manager

City of London

£65,000

A consumer led household name with a portfolio of 10+ gaming, gambling and sports betting services has created an ess...

READ MORE
W1siziisijiwmtcvmdcvmtavmtavntavmdavnde5l1cxc2laaulzswpjd01uy3znrff2twprdk1urxznemd2tkrzdk1qttjmmjfoy21zeuxtlmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mfx1mdazyyjdxq
VACANCY

Business Development Executive

Bedford

£25,000

Join an iconic global electronics brand with offices in Bedfordshire as a Junior Business Development Executive. Join...

READ MORE
W1siziisijiwmtcvmtavmtkvmtavmtgvmdmvnziyl3rvchrhbgvudc1taw4uanbnil0swyjwiiwidgh1bwiilcizmzv4mtcwi25lil1d
Advice

Competing for top talent: From company culture to career development

When you’re looking to hire, the job doesn’t stop when your recruitment partner presents you with a list of appropria...

READ STORY

W1siziisijiwmtcvmtavmtkvmtavmtyvmzevmtm2l3jhaw4tbwlulmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mcnuzsjdxq
Income

Employment rate rises to 32.1 million

The number of people in employment in the UK rose between March to May 2017 and June to August 2017, according to the...

READ STORY

W1siziisijiwmtcvmtavmtkvmtavmtuvmjuvnjmzl0hlyxj0cy1taw4uanbnil0swyjwiiwidgh1bwiilcizmzv4mtcwi25lil1d
News

One in five employees unhappy at work, says survey

One in five workers are unhappy in their current jobs, according to new research conducted by energy comparison site ...

READ STORY

W1siziisijiwmtcvmtavmdmvmdgvmjqvmzavmtmvtwfya2v0aw5nmi1taw4uanbnil0swyjwiiwidgh1bwiilcizmzv4mtcwi25lil1d
Insight

Supporting candidates through the interview process

Knowing whether you should play good cop or bad cop in an interview is not always obvious. It depends largely on the ...

READ STORY

W1siziisijiwmtcvmdkvmtgvmtyvmdgvndqvmjg5l0v4zwn1dgl2ztmtbwlulmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mcnuzsjdxq
Insight

Is faster better?

‘Hire slow, fire fast’ - it’s an old business adage that continues to hold traction today. But in today’s hiring envi...

READ STORY

W1siziisijiwmtcvmdkvmtqvmdgvndkvmdmvntiwl0xpz2h0cy1taw4uanbnil0swyjwiiwidgh1bwiilcizmzv4mtcwi25lil1d
News

Unemployment falls to 4.3 per cent

Unemployment in the UK fell to 4.3 per cent between February to April 2017 and May to July 2017, the lowest since 197...

READ STORY