Equality Trust Response to Government's Corporate Governance Measures
Sunday, 27 November, 2016
In advance of the Government's imminent Green Paper on corporate governance and executive pay, Dr. Wanda Wyporska, Executive Director of The Equality Trust has responded to planned proposals trailed in today's press. Dr. Wyporska said:
"These policies are a step in the right direction, and will go some way to tackle the dangerous and unjustifiable pay inequality we see in this country today. However, more can be done.
"The publication of pay ratios will force companies to seriously consider the fair pay of all employees, rather than treat executives as talent to be rewarded, and everyone else as a cost to be reduced. This is the right move.
"However, the proposals for worker representation do not go far enough. Workers should not simply be represented on remuneration committees - they should also be in the boardroom. Businesses benefit from the knowledge and experience of employees who are on the shop floor, as well as the increased motivation of employees given a genuine stake in the success of their companies. The Government should instead commit to the requirement for company boards to include a third of workers.
"We need to build better corporate governance and stronger, more sustainable businesses that benefit us all. Grotesque pay inequality breeds mistrust between management and workers, and drives the inequality that is so damaging to our society and economy. The Government's proposals are a positive start, but they must go further."