The Business, Energy and Industrial Strategy Committee has today published the Government’s response to its report on executive pay.
The BEIS Committee’s Executive Rewards: paying for success report was published in March. It called for a stronger link between executive and employee pay, recommended businesses make greater use of profit-sharing schemes, and that companies are required to appoint at least one employee representative to their remuneration committee.
Commenting on the Government’s response, Rachel Reeves MP, Chair of the Business, Energy and Industrial Strategy Committee, said:
“The Government’s response to our report on executive pay represents a missed opportunity to rein in bosses’ pay and link CEO pay to that of the rest of their workforce. The public are rightly appalled by extravagant CEO pay packages. The success of a business is rarely solely down to the chief executive and there should be greater efforts to ensure that workers have a share in the profits too.
“It’s disappointing the Government has chosen to reject our recommendation that workers should sit on company pay committees. The appointment of a worker would bring some much-needed scepticism, challenge and perspective on executive rewards and help to curb some of the extravagant CEO pay packages we have seen in recent years”.