British deputy prime minister Nick Clegg, has committed the government to a crackdown on excessive executive pay, saying that austerity in the public sector had to be balanced by curbs on "irresponsible and unjustifiable" pay rises in the private sector.
The deputy prime minister and leader of the Liberal Democrats, said ministers would publish firm proposals next month, and the government was willing to legislate if necessary on measures that could include forcing firms to let workers sit on the remuneration committees setting pay rates for top executives.
“Just as we have been quite tough on unsustainable and unaffordable things in the public sector, we now need to get tough on irresponsible and unjustified behaviour of top remuneration of executives in the private sector,” Clegg said in an interview on the BBC's Andrew Marr Show.
Clegg said he was not opposed to people being paid well if they succeeded.
“What I abhor is people who get paid bucketloads of cash in difficult times for failing,” he said.
Although he stressed that final decisions had not been taken, Clegg signalled three areas where the government was minded to impose reform.
First, shareholders could be encouraged to take a more active role in restraining pay. Second, firms could be forced to put workers on remuneration committees.
And, third, they could be forced to publish information about the gap between average earnings and top earnings in their company. - The Guardian