U.K. Labour Party Says Workers Should Help Set Top Executive Pay
- McDonnell says high pay leads to bad decisions and poor morale
- Labour to set up commission to review policy solutions
April has seen HSBC CEO Stuart Gulliver, pictured, taking a bonus cut after 24 percent of shareholders voted against the remuneration report last year. At BP, shareholders protested a 20 percent pay increase for CEO Bob Dudley.
Photographer: Christophe Morin/BloombergThis article is for subscribers only.
Britain’s opposition Labour Party said junior staff in companies should be consulted about the pay of their bosses following shareholder protests at HSBC Holdings Plc and BP Plc.
In a letter to the Times newspaper Tuesday, the party’s Treasury spokesman, John McDonnell, said high pay for chief executive officers encouraged poor decision-making and hurt employee morale. He said the party is setting up an executive pay commission to look at solutions.