Labour’s manifesto includes measures on curbing excessive executive pay, but there are concerns about the level of proposed state intervention.
Labour confirmed that it plans to introduce an "excessive pay levy" on companies in its election manifesto launch yesterday, but also revealed proposals to impose pay ratios and expand the duty of care for company directors.
The manifesto features measures to impose new rules on companies supplying government services. For example, it includes the expectation that such companies would adhere to a 20:1 ratio for highest to lowest pay.
Labour also proposed amending company law so that a director's duty of care would expand to "not only shareholders, but to employees, customers, the environment and the wider public..."
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