Video Rising Executive Pay: the Final Countdown?

by Yolanda Villafuerte _______8th December 2016
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At the end of November 2016, the British Government published an open consultation green paper on corporate governance reform, seeking views on proposals relating to executive pay, employee and customer voice, and corporate governance in large private businesses. The consultation is available at: https://www.gov.uk/government/consult…

Bobby Reddy, Trustee of Tomorrow’s Company and Lecturer of Company Law at the University of Cambridge, discusses the government’s ambitious green paper. In particular, Bobby casts a critical eye over the proposals revolving around executive pay and employee representatives on boards of listed companies. Rising executive remuneration has long been an emotive issue, and following some high profile instances of extreme executive pay and the rising disparity between executive and regular employee pay, the theme is once again in the headlights of the regulators.

Furthermore, Bobby analyses the government’s latest proposals with respect to the related topic of representing employee interests in listed companies, which fall somewhat short of previous governmental statements advocating requirements to directly appoint employees as members of boards.