Damian Green DWP Minister
Bloomberg’s Laura Hurst and Thomas Penny report: “The proposals, which will be published for consultation on Tuesday, 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, U.K. Work and Pensions Secretary said on Sunday.”
“Often the problem in the past has been that the shareholders haven’t had the power, or in some cases the inclination, to actually protest or to say we don’t find this acceptable,” Green said. “This will give the power to the shareholders.”
Theresa May Challenged
U.K. 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.
Workers will have representation on remuneration committees, Green said, though the plans stop short of workers on boards, a measure proposed by May when she was running for the Conservative Party leadership in July.
Along with greater transparency on pay ratios, having a say in senior pay rates will make workers “feel” that they are sharing in the success of the company, Green said. The proposals are also intended to strengthen the opportunities for shareholders to block excessive pay awards.
Information: Bloomberg
Meanwhile
EU pay rise — officials to get 3.3 percent pay rise:
The pay rise comes from a calculation that averages the pay rises of national civil servants across Europe (1.9 percent), added to the annual inflation rate in Belgium and Luxembourg (1.4 percent).
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