Asset management industry supports government crackdown on excessive executive pay

Commenting on govt plans announced today

A number of asset managers have voiced their support for the UK government's plans to force companies to justify high levels of executive pay.

The government has unveiled plans to make companies reveal the gap in earnings between their chief executive and an average employee, and to justify high levels of pay for senior members of staff. Other recommendations include a binding vote by shareholders on the level and structure of a chief executive's pay and measures on targeting boardroom excesses in both listed and private companies. The proposals are part of the government's consultation paper on corporate governance, which aims to increase public trust in businesses. Hermes calls for 'fundamental rethink' of executive pay...