Cable’s bid to make businesses reveal pay

In a bid to encourage fairer wages, businesses with more than 250 employees will be required to release pay details of their top earner.

Under manifesto proposals companies will also publish their median pay and consult employees on future executive salaries.

The Liberal Democrats in Government say they have already ensured low-paid workers receive the biggest cash rise in take-home pay since 2008 in October.

Business Secretary Vince Cable said: “In the last decade we have seen extreme increases in top executive pay which appear to be completely unrelated to the performance of companies.

“Policies that reward executives out of proportion to the value they create are a clear dereliction of the duty and act against the interests of shareholders and consumers.

“There is widespread consensus, not just among the public but in the business community as well, that this is unacceptable and is undermining the credibility of our markets-based system.

“By making companies be transparent on executive pay and involve employees on salary proposals the Liberal Democrats will make sure rewards are properly aligned with performance.”

The High Pay Commission was established by Compass with the support of the Joseph Rowntree Charitable Trust and it reported in November 2011.

Many of the recommendations were adopted by Government but two significant reforms remain to be implemented. They are to publish ratios of top pay to median pay and consult employees on executive remuneration.

Comment: Page 10.