Oral Answers to Questions Debate
Full Debate: Read Full DebateStephanie Peacock
Main Page: Stephanie Peacock (Labour - Barnsley South)Department Debates - View all Stephanie Peacock's debates with the Department for Business, Energy and Industrial Strategy
(6 years, 6 months ago)
Commons ChamberThe Government will legislate to require quoted companies to publish and explain the ratio of their chief executive officer’s pay to the average pay of their UK employees. Companies will also have to provide a better explanation of how share price increases affect the value of complex, long-term incentive plans.
It would take the average person in Barnsley East more than 176 years to earn what the average FTSE CEO earns in 12 months. Does the Minister agree that that is a sign of grotesque inequality in the UK? What is he going to do about it?
What private companies pay their directors is ultimately a matter for their shareholders, but the new pay ratio disclosure requirements mean that we will give shareholders and other stakeholders important new information on how pay at the top of companies fits with wider workforce pay. Companies will be forced to explain and defend their pay ratios and account for changes to the ratio over time.