Business groups are largely in favour of the government’s planned law to publish pay ratios, but the TUC describes the ‘tick-box’ approach as ‘feeble’.
Publishing executive and staff pay ratios under new governance reform rules would be a "crude" measure of valuing remuneration, but it should force boards to consider pay as a whole, experts have said.
The government has followed up its governance green paper with plans to introduce the reporting of pay ratios, worker representation on boards and more detail required from all large, private companies about how they impact the environment in which they operate.
Business groups have broadly favoured the new mandate. Stephen Martin, director general of the Institute of Directors (IoD), said pay ratios will “sharpen the awareness of bo
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