From the start of 2019, listed companies in the UK will be obliged to publish – and justify – the pay gap that exists between their chief executive and staff. The new measure was announced on Sunday 10 June by Theresa May’s government, with a bill set to be unveiled to parliament on Monday. This flagship measure of the country’s all-new industrial strategy is an unprecedented reform and had been promised close to one year ago. It comes at a time when the behaviour of certain highly-paid bosses, sometimes dubbed ‘fat cats’, has been subject to criticism.
Announced back in August 2017 (see article n°10327), the reform follows concerns “that some chief executives have been receiving salaries that are out-of-step with company performance”, the UK government announced on Sunday, on the eve of the bill’s unveiling in parliament. In practice, listed UK companies with more than 250 employees in the country will be obliged to publish the pay gap between their CEO and the average employee, and explain that difference. This new requirement is set to come
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