Companies forced to make pay differences public
Companies will have to justify their chief executives’ salaries and reveal the gap to their average UK worker.
It's under new laws to be laid out in Parliament on Monday.
It means that for the first time, UK listed companies with more than 250 UK employees will have to disclose and explain this difference – known as ‘pay ratios’ – every year.
This follows concerns that some chief executives have been receiving salaries that are out-of-step with company performance.
These new regulations are part of a package of reforms which will hold big businesses to account for the salaries they pay, while giving employees a greater voice in the boardroom.
Business Secretary Greg Clark said:
"One of Britain’s biggest assets in competing in the global economy is our deserved reputation for being a dependable and confident place in which to do business.
"Most of the UK’s largest companies get their business practices right but we understand the anger of workers and shareholders when bosses’ pay is out of step with company performance.
"Requiring large companies to publish their pay gaps will build on that reputation by improving transparency and boosting accountability at the highest levels, while helping build a fairer economy that works for everyone."
Published: by Radio NewsHub