Oral Answers to Questions

Debate between Stephanie Peacock and Andrew Griffiths

Tuesday 30th January 2018 Commons Chamber

[Stephanie Peacock (Barnsley East) (Lab)]

19. If he will take steps to regulate executive pay.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Griffiths)]

The 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.

--- Later in debate ---

[Stephanie Peacock]

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?

[Andrew Griffiths]

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.