U.K. Firms May Have to Justify Executive Pay Gaps
- Business department to force firms to justify pay differences
- Firms to have to detail how they act in interest of workers
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Large companies listed in the U.K. will have to explain the pay gap between bosses and employees under government plans to be submitted to Parliament on Monday.
Firms with more than 250 staff on their books will have to publish and justify the difference in pay between chief executives and workers and will have to detail how directors are acting in the interests of both employees and shareholders, the Department for Business, Energy and Industrial Strategy said. The new rules also require companies to provide their investors with information on the impact share price increases will have on long-term incentive plans.