Close site search

Simply start typing to search Changeboard and then press enter

Corporate pay: Business, Innovation and Skills select committee announces inquiry

Posted on from Changeboard

Theresa May has targeted corporate pay in her first few months in office, it has now been announced that one of her committees will be leading an inquiry into corporate practice. What will this mean for pay packages and boardroom diversity?

The Business, Innovation and Skills (BIS) select committee has announced it will be leading an inquiry into the excess corporate pay in UK businesses.

BIS has been particularly active recently, fronting government investigations into the working conditions at Sports Direct and the collapse of BHS.

Ian Wright, MP for Hartlepool and chair of the BIS said: “Irresponsible business behaviour and poor corporate governance certainly act against the interests of workers, but they also act as a brake on long-term prosperity and profitability in companies. We need to look again at the laws that govern business and how they are enforced.

“We are also keen to explore the issue of ever growing pay increases to executives, especially when there often seems to be very little connection with company performance or any pay rises to the vast majority of employees.”

The investigation will also look at diversity in corporate boardrooms. Last month, research by the Equality and Human Rights Commission found that only 5% of FTSE 100 board members were from ethnic minorities

Evidence will be collated from the testimonies of shareholders, employers’ bodies and campaigners for institutional change.

The announcement has been welcomed by senior figures at the Institute of Directors and the Trade Unions Congress (TUC).

Frances O’Grady, TUC general secretary said: “Poor corporate governance contributes to high profile corporate disasters, such as BHS, but also to short-termism and excessive executive pay across much of the sector. This inquiry is important and timely.”

 

Content by email

Thanks! You have been subscribed to receive emails about the following subjects.

Get more with Changeboard

Changeboard is a global HR jobs site, career advice resource and events platform to help HR and recruitment professionals find the perfect job to progress their careers. We're here to help you change the way you work.

Register now

Changeboard Magazine

Changeboard is read by more than 22,000 senior leaders in print and 85,000 online.

  • Get Changeboard Magazine
    online

  • Get Changeboard Magazine
    on mobile

  • Get Changeboard Magazine
    in print

Subscribe to Changeboard today for:

  • Engaging and relevant decision-support content
  • Exclusive interviews with CEOs & HR leaders
  • In-depth profiles, case studies & insights from progressive senior HR & resourcing practitioners
  • Stimulating career advice, delivered in bitesized chunks to help busy professionals advance their careers efficiently.
Get the Changeboard magazine
Get Changeboard Magazine
Loading

Job search saved

Your search has been successfully saved.

Register or log in to manage job alerts.