In order to polish the image of companies in the UK that have been tarnished by scandals, Theresa May’s Conservative government has unveiled a corporate governance reform. Made public on 29 August, the reform’s flagship measure is to force listed companies to publish and justify the pay gap between their chief executive and an average employee. Meanwhile companies where 20% or more of shareholders vote against the pay deals for executives will be included in a new public register. Finally, the corporate governance code will be updated in order to encourage large groups to give employees a voice on their boards.
Following months of statements, UK prime minister Theresa May has finally decided to act to bring an end to the era of ‘fat cats’, with around 900 large listed companies forced to publish and justify the pay gap that exists between their CEO and average employee. When unveiling the government’s plan of attack, Greg Clark, the UK business secretary, said: “Today’s reforms will build on our strong reputation and ensure our largest companies are more transparent and accountable to their employees
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