Nick Clegg promises to get tough on 'unjustified' boardroom pay
Nick Clegg promises to get tough on 'unjustified' boardroom pay
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Sunday, 04, Dec 2011 12:25
By Laurence Taylor
The government is set to crackdown on excessive levels of boardroom pay in the private sector, Nick Clegg has revealed.
The deputy prime minister has confirmed that ministers are currently formulating proposals to curb "unjustified and irresponsible" pay rewards and are willing to legislate if necessary.
Potential plans include allowing workers to join remuneration committees - the bodies which set pay rates.
Speaking on the BBC's Andrews Marr Show, Mr Clegg ruled out the possibility of the government setting levels of pay and backed the practice of rewarding executives for good performance.
However, he called for an end of bosses being rewarded for "failure".
"We need to get tough on irresponsible and unjustified behaviour of top remuneration of executives in the private sector," he said.
"What I abhor is people getting paid bucket loads of cash in difficult times for failure."
A recent report from pay research firm Incomes Data Services revealed that executive pay at the UK's leading firms rose 50 per cent last year, taking the average pay for a director of a FTSE 100 company to just under £2.7 million.