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Labour’s plan for stakeholder votes on boardroom high pay might just work

Time is running out for UK corporations to show that the voluntary model works.

Published:
uk money.jpg
uk money.jpg

Image: ImagesMoney/Flickr/CC 2.0

Labour’s frontbench grabbed headlines earlier this week by considering plans to involve employees and customers at the UK’s 7,000 biggest firms in annual binding votes on boardroom pay.

This proposal could be as popular as it is original. To my knowledge, no advanced economy has tried ‘customer say on pay’. But, since the financial crisis in 2008, polling has consistently shown major public concern about undeserved executive salaries.