A new governance code for UK private companies will say nothing on executive pay, it has been revealed.
The businessman leading the project to define a code for private companies has said that the pay of executives in private businesses is between them and their bosses.
James Wates, who chairs the construction company Wates, told the Financial Times: “I believe, personally, that what we pay our people in private business is between us and them.”
He said that to publicise pay rates would be to put a “for sale” sign on top management talent.
Wates was appointed in January to head a group developing a new governance code for private business.
The move came in response to high-profile business failures such as BHS. Wates is working with other bodies such as the Financial Reporting Council, the Institute of Directors, and the Trades Union Congress (TUC).
At the time of his appointment, Wates said: “I hope that the standards produced through this effort will help promote and enable ever-stronger and more consistent corporate governance amongst large private companies, which generate significant value for the UK economy and society.”
The new code will apply to companies with 2,000 employees or with a turnover of more than £200m, or a balance sheet of more than £2bn.