BlackRock demands FTSE 350 firms tackle executive pay

UK-Currency-Money-Pound-GBP-700x450.jpgBlackRock has railed against excessive remuneration at companies in the FTSE 350 demanding executives’ pay be scaled back.

The asset management giant has written to the board chairs of all the companies in the FTSE 350, the FT reports, demanding executives’ pay progress in line with other employees. The firm also appealed for executives’ pension packages to be “in line with the rest of the workforce”.

In December, BlackRock told a parliamentary hearing it would vote against members of remuneration committees that agreed to excessive rewards. The total pay for heads of FTSE 100 firms has quadrupled over the past 18 years.

This year around half of the companies in the FTSE 350 will face binding votes on pay whereby shareholders, rather than company directors, have the final say on executive pay awards.

The Government published a consolation paper on potential executive pay reforms in November with Prime Minister Theresa May saying she will force private companies to publish pay ratios to highlight the differential between executives and average workers.