A government green paper proposes binding votes on executive pay. Michael Price argues that the “corporate elite” has tried and failed to self-regulate and it is time for something new.
Theresa May has made tackling corporate excess one of her key priorities in government. In a Green Paper on Corporate Goverance Reform she promised shareholders a binding vote on executive pay and proposed that companies publish pay ratios between the highest and lowest paid staff. In truth, this recent focus of attention is not new—we’ve all been here before.
The prime minister’s proposed reforms will not be effective in either reducing the headline figure of executive pay (if indeed that is their objective), nor in making executives any more accountable. Unfortunately, May seems to have misunderstood the problem and is proposing m
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