Hermes Investment Management has reportedly proposed Britain's largest companies should cap the salaries of chief executives, following widespread concerns over excessive pay.
According to Sky News, the firm has circulated a document among the chairs of FTSE 350 companies' remuneration committees, the first time a mainstream fund manager has made such a suggestion. Hermes, which is owned by the BT pension scheme, is understood to have drafted its proposals in recent weeks with a final document expected in the next month. The document reportedly proposes that firms publish the figure above which a chief executive's pay would not rise, with the sum then discussed with investors. Quick-fire interview with Hermes' Saker Nusseibeh: Industry is bifurcating int...
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