Salary Sacrifice Schemes

By June 2018, as part of new corporate governance reforms, any company that is publicly listed must publish and justify the pay differences between their highest paid executives and their average salary.

They will also have to publish a narrative of their pay ratios over the years and a list will be published annually of companies who have had shareholder opposition about their executive salaries. The aim of pay reporting is to encourage businesses to address growing inequality via the carrot (protecting their reputations after publishing) instead of the stick (fines/bans etc.).

However, some have said that more could be done to address the issue and this is not as strong as the employee board representation that was touted prior to the election. Companies with over 250 employees already have to publish figures on their gender pay gaps next April and some believe a similar measure could and should be adopted for race pay gap reporting in the near future.