organisations delivering public services should include an employee representative in the membership of their remuneration committeesThe whole text on this is worth a read:
5.11 A powerful way to ensuring that the wider workforce context is considered when executive pay is being determined is through the presence of an employee representative on the remuneration committee. Participation is an important part of a fair process, as established in Chapter 1. The participation of this employee representative will give the wider workforce a direct voice in the executive pay-determination process, and will help ensure that decisions can be justified to all employees. The presence of an employee representative could also improve the quality of executive pay decisions, both by contributing information on the working of the organisation that is independent of its management, and by increasing the diversity of remuneration committee membership. Indeed, employees have an incentive to monitor executive pay and performance since they have so much staked on the success of the organisation – arguably even more than shareholders (as selling shares is typically easier than changing job).
5.12 Employee participation in remuneration committees would be an evolutionary step, and would be consistent with the Government’s wider vision of greater employee power in public services, including through the encouragement of mutualisation and the formation of staff co-operatives in public services. In many public service organisations employees already play a significant role in corporate governance: for example, NHS Foundation Trusts have staff governors on their boards of governors, many schools have teachers serving as Governors, and university governing bodies frequently include academic or non-academic staff members.