NICK Clegg, the deputy Prime Minister, yesterday said the government was prepared to introduce new legislation that could force listed firms to change the way they determine pay awards for top executives.
Clegg said the government would publish a set of proposals in January, adding it was willing to introduce new laws that could force firms to put a rank-and-file employee on their remuneration committees.
“We now need to get tough on... remuneration of executives in the private sector,” Clegg said.
However, he insisted that the government had no intention of “setting pay” at publicly-listed firms.
Employers’ organisation the CBI has said top pay should be more closely linked to performance, although it has called on the government to enforce any new rules using a “comply or explain” code rather than passing new laws.