The Government’s Corporate Governance Reform green paper consultation invited views on the option of requiring quoted companies to report on the pay ratio between their CEO and the average worker. In its response to the consultation, published on 29 August 2017, the Government announced that it would legislate to introduce pay ratio reporting as part of a wider set of corporate governance reforms.
The detail of the pay ratio reporting provision has been developed since then. This has included two phases of informal consultation with a balanced range of stakeholders. The secondary legislation needed to implement pay ratio reporting, and the other new corporate governance reporting requirements announced last year, will be laid in Parliament this summer.