Code of practice to curb excess pay
25 Jul 2018
This article was first published by The Times on 19 July 2018.
Partner Charles Mayo speaks to The Times
Big business faces more scrutiny than at any time since the US presidents Theodore Roosevelt and William Taft brought monopoly-busting law suits against some 120 companies more than a century ago.
Cartels still worry politicians, but in Westminster ministers and watchdogs are fixated on corporate governance in an attempt to crack down on two perceived evils: runaway senior executive pay and board behaviour when backs are against the wall facing insolvency.
Recent images are seared on the minds of MPs and City leaders: Sir Philip Green bronzing himself on his yacht as BHS, his high street department store chain, went under; and more recently Jeff Fairburn, the boss of Persimmon, the housebuilder, bagging a £75 million bonus on a pay packet that is 3,000 times larger than the average wage of those lugging the bricks.
This week the watchdog barked the loudest. The Financial Reporting Council published an updated code of practice that covers senior pay, the independence of board chairs and workforce relations.
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