Theresa May to force companies to declare boss and worker pay gap - report
1 min read
Theresa May is to force companies to declare the size of the pay gap between bosses and workers on the bottom rung of the ladder, it has emerged.
According to the Financial Times, says moves to make big firms publish the ratio between the total remuneration of the chief executive, including bonuses, and the average UK worker will be included in the Government’s corporate governance paper to be released on Tuesday.
But previous pledges on putting workers on company boards, or binding votes on companies’ pay policies, are not expected to be included.
The Prime Minister originally raised the prospect of a crackdown on executive pay in her Conservative leadership bid last summer, but faced criticism from unions when she appeared to renege on the more drastic proposals.
Her move comes after Jeremy Corbyn’s election pledge to limit the highest paid member of staff to 20 times the average worker for companies with public sector contracts.
The average take-home pay for the CEOs of top market-listed companies in the UK was £4.5m last year, according to the High Pay Centre’s annual survey of top executive pay.
Meanwhile, Office for National Statistics figures showed the average annual earnings of full-time employees in the year to April 2016 was £28,200.
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