Commenting on the publication today (Sunday) of further details of the government’s proposed legislation on corporate pay ratios, TUC General Secretary Frances O’Grady said:
“Publishing and justifying pay ratios is a first step, but more is needed. Fat cat bosses are masters of self-justification and shrugging off public outcry. New rules are needed to make sure they change.
“We need guaranteed places for worker representatives on boardroom pay committees. That would bring a bit of common sense and fairness to decision-making when boardroom pay packets are approved.”
“And the government should put an end to phoney incentive schemes that reward executives above and beyond the actual results they get.”
- For more detail on the TUC’s views on corporate pay rules, see our written evidence to the Business Select Committee: https://tinyurl.com/y7wky6ls
- The TUC is concerned that Long-Term Investment Plan (LTIP) schemes are not genuinely rewarding performance. LTIPs are executive share plans that reward senior employees that meet conditions for contributing to shareholder value. Research for the High Pay Centre found that LTIP payments to FTSE 350 Directors increased by over 250 per cent between 2000 and 2013, roughly five times as fast as returns to shareholders. And it found a negligible link between LTIP payments to executives and shareholder returns.
- The Trades Union Congress (TUC) exists to make the working world a better place for everyone. We bring together more than 5.5 million working people who make up our 49 member unions. We support unions to grow and thrive, and we stand up for everyone who works for a living.