Govt to force firms to reveal pay gap between bosses and staff

Parliament-UK-London-Thames-Building-700x450.jpgListed companies will soon have to publish a ratio comparing their chief executive’s salary to their average UK staff member’s, according to reports.

The Government is also set to introduce a register showing companies where more than a fifth of shareholders have revolted over executive pay in a set of reforms to be outlined next week.

Shareholder activism in particular has been seen to be on the rise recently, with large investment companies like Standard Life and Royal London publicly criticising remuneration packages at some of the firms they hold significant stakes in.

However, Prime Minister Theresa May’s proposals are unlikely to go as far as to make shareholder votes on pay binding, or to force boards to contain a worker.

Reports suggest that chief executive remuneration will include all incentives and not just base salary for the purpose of ratio reporting.

Sky News has also reported that fund manager trade body the Investment Association will run the register of companies where at least 20 per cent of shareholders had opposed remuneration policies.