Companies whose investors rebel against executive pay will be recorded on a public register under proposals which are set to be put forward by ministers next week.
Business secretary Greg Clark is to announce that the Investment Association, the fund managers’ trade body, will put together the list, Sky News reported last night.
The register which will include any firm where at least 20 per cent of shareholders oppose remuneration packages.
The move comes as the government seeks to dispute claims that it has watered down the tough approach to business promised by Theresa May on her ascendancy to office.
Sources told Sky News that the new laws are also the first step towards mandating listed companies to publish the ratio between the pay of their chief executive and their average worker. However it is as yet unclear whether this will include any bonuses awarded to CEOs.
Clark’s announcement is also expected to nod towards the controversial workers on boards policy. The government hopes to guarantee listed companies’ employees more say in the upper echelons of firms by amending the Corporate Governance Code, which is overseen by the Financial Reporting Council (FRC).
This could take the form of nominating a director from the company’s workforce or might alternatively mean a non-executive director is given the responsibility of representing employee views.
The Department for Business, Innovation and Skills declined to comment.