Doubts raised over pay plan
AN EMPLOYMENT lawyer has questioned whether the government's proposals to make companies publish what their executives are paid will have enough '˜teeth' to make a difference.
Lisa Wallis, from Portsmouth firm Blake Morgan, said: ‘If adhered to properly, current legislation should be sufficient to prevent companies behaving inappropriately. Listed companies have been subject to additional regulation for years, but history shows it hasn’t always prevented the poor practices of some companies.
‘Nevertheless, the government obviously wants to take steps to increase awareness of these duties and to strengthen the effect of reporting. The question will be whether the final proposals will have enough “teeth” to make a difference.’
The government outlined plans to make companies justify high levels of executive pay in a recent green paper.