Monday, 23 July 2007

Fixing the pay gap

There was an interesting piece in The Observer yesterday about the Government looking into making companies report on how they take employee pay into account when setting directors' awards. This is a long-standing gripe of many on the Left who know a bit about corporate governance. Although the Combined Code says that companies should take account of employees' pay and conditions (see principle B.1 supporting principle), there is precious little evidence that they do.

The Government consulted on the issue when looking at the implementation of the Companies Act, and last month it announced (rather quietly) that it planned to do something about it. See the written answer from then DTI mininster Margaret Hodge here.

It looks promising...

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