Backlash over Government plans to crack down on corporate excess

A pledge to overhaul the way big business are run formed a key element in Mrs May’s speech to party conference last year, as she argued change was necessary to discourage a “small number” of firms from behaving irresponsibly.

Ministers have finally unveiled measures to deliver this reform, including proposals to record shareholder opposition to executive pay packages.

But the plans make no mention of Mrs May’s early suggestion of placing workers on boards, instead amending the UK Corporate Governance Code so firms can either assign a non-executive director to represent employees, create an employee advisory council, or explain why they cannot do this.

“The Prime Minister’s original announcement was meant to make the Conservatives look friendly to working people – but she has completely failed even to follow through on the modest promise she made, watering it down so much that it is meaningless,” said GMB general secretary Tim Roache.

“Worker representation on boards would have helped get greater fairness and dignity in the workplaces. People won’t fall for the Prime Minister’s nice words when they are followed by broken promises like this.”

“It’s a feeble proposal, spelling business as usual for boardrooms across Britain,” added the TUC’S Frances O’Grady, “The Prime Minister’s pledge to put workers on company boards has been watered down.”

A senior member of the Financial Reporting Council, which regulates corporate governance, acknowledged that the proposals on employee representation are “different to what has been promised”.