"A permanent body to investigate and report on levels of executive pay which have now reached "stratospheric" levels should be set up by the Government, an inquiry concluded today.
The High Pay Commission reveals that the pay of top executives has soared by more than 4,000 per cent in 30 years, undermining productivity and "damaging" trust in British business.
It recommends that a body should be established with access to Revenue & Customs data on pay to monitor trends at the top of the income distribution and report to ministers.
As The Independent reported yesterday, the Commission also calls for companies to be forced to publish details of the pay gap between top executives and their average employees. It also recommends that workers should be represented on remuneration committees."
http://www.independent.co.uk/news/business/news/workers-should-be-given-powers-to-help-curb-pay-of-top-executives-6265849.html
My notes to self:
1. lack top-down counter-pressure on executive pay; if execs get paid on risk, risk of loss should expose downside as well; I like the idea of a relativity ratio for public companies with more than 100 employees, with maximum of, say 20 to 1 between top and bottom rates of pay. Options are not kosher method of payment as no downside risk of actual loss, unlike shares.
2. At least UK will address the issue. US cannot for obvious reasons of political failure.
| 