British fashion companies and retailers that are listed on the stock market with over 250 employees must be transparent about executive pay.
New pay regulations and standards set by the UK government came into force on the 1st of January, making it a statutory requirement for companies to disclose the salaries and bonuses paid to their executives. Companies will need to explain the difference in pay between management and the average worker.
The new laws also require all sizeable companies to report on how its directors take employee and other stakeholder interests into account and require large private companies to report on their corporate governance arrangements.
Business secretary Greg Clark said: “Britain has a well-deserved reputation as one of the most dependable and best places in the world to work, invest and do business and the vast majority of our biggest companies act responsibly, with good business practices.
“The regulations coming into force today will build on our reputation by increasing transparency and boosting accountability at the highest level – giving workers a stronger dialogue and voice in the boardroom and ensuring businesses are accountable for their executive pay.”
These new regulations are a key part of the wider package of corporate governance upgrades we are bringing forward as a government to help build a stronger, fairer economy that works for businesses and workers."
Photo credit: Alex Edmans, London Business School