Government to force firms to reveal pay ratio of CEOs and the average worker

Corporate governance reforms expected in May

The government is set to propose legislation that forces the UK's largest firms to reveal pay ratios between chief executive and average worker's salaries and the impact of future share price increases on executive pay.

Expected to come in May, Prime Minister Theresa May first proposed the law in August last year following research finding the ratio between FTSE 100 CEOs and their average employee pay was 129:1 in 2017, according to the Chartered Institute of Personnel and Development and think-tank the High Pay Centre. According to the Financial Times, the legislation will also require boards of both public and private companies to show they have behaved in the best interests of not only shareholders, but also employees, suppliers and customers. This will lead to a significant increase in reporting ...