London: UK Prime Minister Theresa May will unveil plans for a crackdown on business executives’ salaries and bonuses on Tuesday as the government seeks to narrow the gap between average workers and their bosses, The Sunday Telegraph reported.
The proposal will seek to set up staff scrutiny committees, force firms to publish pay ratios between chief executive officers and average employees, and give shareholders binding veto powers on executive pay, according to the newspaper.
The proposal “is a vital step to meeting the aims and ambitions the prime minister identified” in a speech to business leaders, “defending and promoting globalization by making sure it works for everyone,” May’s office said in an e-mailed statement after the talk on 21 November. A consultation period on the plan will begin “shortly,” and the government will listen “and value” responses to the proposals, it said.
UK business leaders backed by the Bank of England challenged May’s calls to restrict executive pay, in a report published on Friday. The Purposeful Company Taskforce is recommending pay policies that encourage long-term performance, stopping short of binding votes on wages. Bloomberg