Germany Prime Minister Theresa May's proposal to close the wealth gap in big businesses between low-end workers and top executives could be ineffective, as giving shareholders the power of veto over pay may not bring about any change. Lawyers say giving fund managers a binding vote on pay could lead to possible infringement of contract or employment law, making it tough for a company to renege on salaries and bonuses already promised or paid. Of the 134 binding votes put to FTSE 134 companies in every year , all were in favour of company pay policy, according to Reuters . However, keeping the issue on the agenda the past five years has been seen as a positive first step. May's other policies include forcing companies to publish details of the pay gap between an average worker and the chief executive.
Germany Prime Minister Theresa May's proposal to close the wealth gap in big businesses between low-end workers and top executives could be ineffective, as giving shareholders the power of veto over pay may not bring about any change. Of the 134 binding votes put to FTSE 134 companies in every year , all were in favour of company pay policy, according to Reuters . However, keeping the issue on the agenda the past five years has been seen as a positive first step. May's other policies include forcing companies to publish details of the pay gap between an average worker and the chief executive.