Prime Minister Theresa May is set to unveil plans to crackdown on boardroom excess at large private companies.
Today the government will propose new corporate governance plans with the intent to bring private companies into line with those listed on the public stock market in terms of transparency and employee protection, The Guardian reports.
Commenting on the plans, May said: “The growth of our privately held companies should be celebrated and supported as they are a vital part of our strong economy.
“We have, however, seen an irresponsible minority of privately-held companies acting carelessly – leaving employees, customers and pension fund beneficiaries to suffer when things go wrong.”
In July, before she took over as prime minister, May pledged to place tighter controls on executive pay, to ensure the country works not just for “the privileged few”.
The measures mean that that large private businesses such as Philip Green’s Arcadia Group could now be required to say how much their bosses are paid.
However, May has already told these companies’ leaders she does not plan to force businesses to directly appoint workers or consumer representatives on to their boards.
The UK currently has approximately 2,500 private companies, and 90 limited liability partnerships with more than 1,000 employees, according to government estimates.
The measures will be subject to a consultation before being finalised.