{"id":11450,"date":"2017-02-13T17:09:32","date_gmt":"2017-02-13T17:09:32","guid":{"rendered":"http:\/\/unitelive.org\/?p=11450"},"modified":"2017-02-14T12:05:58","modified_gmt":"2017-02-14T12:05:58","slug":"firms-move-curb-exec-pay","status":"publish","type":"post","link":"https:\/\/unitelive.test.igniteamt.com\/?p=11450","title":{"rendered":"Firms move to curb exec pay"},"content":{"rendered":"
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Ten percent of the UK\u00e2\u20ac\u2122s FTSE 100 firms are deliberating on scrapping long-term incentive plans (LTIPs) to curb astronomical executive pay in response to shareholder revolts<\/a> on the issue, it has been reported.<\/p>\n

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According to the Financial Times<\/em><\/a>, companies are considering a shift away from performance related LTIP payouts to share-based bonuses, in order shrink the wage gap between CEOs and ordinary workers.<\/p>\n

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Unite said self-policing was not enough to tackle the increasingly obscene pay disparity<\/a> between fat cat bosses and normal workers.<\/p>\n

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The average salary of a CEO is now \u00c2\u01414.3m, compared to an average of \u00c2\u014128,000 a year for ordinary workers. Last year, Britain\u00e2\u20ac\u2122s best paid chief executive, Sir Martin Sorrell, pocketed \u00c2\u014163m as part of an LTIP agreement.<\/p>\n

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Investors told the FT<\/em> that financial service and retail companies are among those deciding whether to ditch LTIPs, which have made significant contributions to sky-rocketing executive pay<\/a> during the past decade.<\/p>\n

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Royal Bank of Scotland, which had to be bailed out after the 2008 financial crisis, is also looking at getting rid of LTIPs \u00e2\u20ac\u201c a move that would cut the pay of its top executives by nearly half.<\/p>\n

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Investor groups, including Schroders, Aberdeen, M&G and Hermes, are leading the reform effort.<\/p>\n

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\u00e2\u20ac\u015bLTIPs are not the whole problem. But they are a significant part of it,\u00e2\u20ac\u0165 said M&G head of corporate finance and stewardship, Rupert Krefting.<\/p>\n

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But despite attempts at reform, pay experts told the FT<\/em> that many companies will resist attempts at change.<\/p>\n

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News of the reforms coincided with the closure on consultations this week for a government green paper on reforming executive pay. The paper recommends companies publish pay ratios<\/a> that compare CEO wages with those of average employees.<\/p>\n

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Although Theresa May promised to tackle the growing wealth divide when she took office last year, she promptly u-turned on progressive plans<\/a> to install worker representatives on company boards.<\/p>\n

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Unite assistant general secretary Steve Turner said that income inequality can only be solved by an equitable rebalancing of economic power.<\/p>\n

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\u00e2\u20ac\u015bGrowing inequality over the past 30 years has its parallel in a weakened trade union movement and the collapse of collective bargaining. A return to a strong, well-organised and effective trade union movement coupled with sectoral collective bargaining is the answer,\u00e2\u20ac\u0165 Turner said.<\/p>\n

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\u00e2\u20ac\u015bIt is a failure to introduce proper, effective and enforceable structures of corporate governance \u00e2\u20ac\u201d structures that give workers a powerful collective voice in the companies they work for \u00e2\u20ac\u201d that is at the heart of runaway corporatism both here at home and across much of the globe.\u00e2\u20ac\u0165<\/p>\n

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He added, \u00e2\u20ac\u015bThe government must act to address both if we are to tackle gross inequalities and build a fairer, more just Britain.\u00e2\u20ac\u0165<\/p>\n

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Ten percent of the UK\u00e2\u20ac\u2122s FTSE 100 firms are deliberating on scrapping long-term incentive plans (LTIPs) to curb astronomical executive pay in response to shareholder revolts on the issue, it has been reported.   According to the Financial Times, companies are considering a shift away from performance related LTIP payouts to share-based bonuses, in order […]<\/p>\n","protected":false},"author":1,"featured_media":827,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[643,102,289],"wps_subtitle":"Unite says self-policing is not enough","_links":{"self":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts\/11450"}],"collection":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11450"}],"version-history":[{"count":1,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts\/11450\/revisions"}],"predecessor-version":[{"id":11451,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts\/11450\/revisions\/11451"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/media\/827"}],"wp:attachment":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11450"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11450"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}