UK Prime Minister Theresa May’s plans to reform corporate governance have been criticised in a report by thinktank Bank of England. The report, whose authors include the Big Innovation Centre chief economist Andy Haldane and remuneration chief of Kingfisher, Clare Chapman, rejected the idea of binding shareholder votes on executive pay, calling for such votes only after 25% of shareholders have rejected the pay report for two consecutive years, and criticised calls for companies to publish pay ratios. The report called for simpler pay structures and fair pay charters, as well as direct comparisons of CEO pay to company performance.
UK Prime Minister Theresa May’s plans to reform corporate governance have been criticised in a report by thinktank the Big Innovation Centre. The report, whose authors include Bank of England chief economist Andy Haldane and remuneration chief of Kingfisher, Clare Chapman, rejected the idea of binding shareholder votes on executive pay, calling for such votes only after 25% of shareholders have rejected the pay report for two consecutive years, and criticised calls for companies to publish pay ratios. The report called for simpler pay structures and fair pay charters, as well as direct comparisons of CEO pay to company performance.