The government has today (Tuesday) published its package for corporate governance reform. TUC General Secretary Frances O'Grady said:
"This is a far cry from Theresa May’s promise to crackdown on corporate excess. It’s a feeble proposal, spelling business as usual for board rooms across Britain.
"The Prime Minister’s pledge to put workers on company boards has been watered down beyond all recognition. This now amounts to little more than a box-ticking exercise.
"Firms will rightly have to publish the pay gap between bosses and ordinary workers, but we are concerned that the government’s calculations will take the focus off the lowest-paid.”
Notes to editors:
- On workers on boards, the TUC is calling for companies over a certain size to have worker directors elected by all staff, like many other European countries such as Germany and Sweden.
- On pay ratios, the TUC welcomes the new proposal, but is concerned that the pay ratio will be calculated between executive salaries and the average worker, not the between executives and the lowest-paid workers.