More than four in five pension funds are concerned about the gap in pay between executives and staff at listed companies, according to a new survey.
Research from trade body the Pensions and Lifetime Savings Association showed 84 per cent expressed concerns over the gap in salaries. 86 per cent said they thought the pay for executives at the companies was too high.
The results come in the week that the Government announced a number of proposals to curb excess pay, including forcing companies to publish ratios of executive to average employee pay.
While the Government has backed down on plans to make shareholder votes against remuneration policies binding, a new register overseen by the Investment Association will name and shame cases where over 20 per cent of investors protest.
Stewardship and corporate governance policy lead Luke Hildyard says: “Workplace pension schemes represent the interests of almost 20 million active members across the UK and invest trillions of pounds into the economy – they are some of the most long-term and engaged shareholders that companies have. It is clear that they are extremely uncomfortable with the executive pay culture that has taken hold across corporate Britain with the vast majority voicing concerns over the pay gap and executive pay in listed companies.
“We are hopeful that this week’s announcement from the Government will be a concrete step forward which will see a more measured and transparent approach to executive pay.”