Press Coverage - 28/03/2019
Calls for bosses pay packages to be brought in line with employee pay ‘welcomed’
In a recent article for LexisNexis, our Employment team declare that “pay structures, particularly at the top end, are notoriously opaque and any measures that provide transparency on pay are bound to be welcomed by employees.”
The Business, Energy and Industrial Strategy Committee (BEIS) has published a report on the differences between top bosses pay and the rest of their workforce. BEIS believe that companies need to do more to link bosses pay with their employees’ pay and that the large difference in pay is ‘baked’ into the pay system. According to the report, a reliance on incentive-based executive pay, that is often supported by remuneration committees that design pay packages, is the root cause of the large executive pay packages. Over the last ten years, chief executives’ earnings in the FTSE 100 have increased four times as much as national average earnings.
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This article was first produced by LexisNexis and has been reproduced in kind.