UK 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. But for Stefan Stern, head of the High Pay Centre, an independent think-tank which reported a 10 percent rise in chief executives’ pay to 5.5 million pounds last year, an annual vote would nevertheless keep the issue on the agenda. Of the 134 binding votes put to FTSE 100 companies in the past five years, all were in favour of company pay policy, according to ISS Corporate Solutions. The report also found that only one out of 10 firms has a formal policy on gender equality or diversity at work, with just two per cent having an explicit policy. May's other policies include forcing companies to publish details of the pay gap between an average worker and the chief executive.
UK 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 100 companies in the past five years, all were in favour of company pay policy, according to ISS Corporate Solutions. The report also found that only one out of 10 firms has a formal policy on gender equality or diversity at work, with just two per cent having an explicit policy. May's other policies include forcing companies to publish details of the pay gap between an average worker and the chief executive.