UK Deputy Prime Minister Nick Clegg promised viewers of BBC’s ‘Andrew Marr Show’ that the government will crack down on CEO excessive jobs bonuses. Clegg stressed that he personally was unopposed to employees, even CEOs, getting rises when they improve a company, but finds the recent trend of executives giving themselves huge rises when a company does poorly ‘irresponsible and unjustifiable.’
In the last 20 years, companies proffer ‘golden parachutes’ and hundreds of thousands of pounds’ worth of perks during recruitment of new CEOs or other top level employees. Big companies will also hire outside of the firm rather than take on employees that made careers of working for that company. Clegg cited an October Income Data Services report that stated high ranking executives of FTSE 100 companies gave themselves rises of 49 per cent.
Clegg stated that company shareholders need to be more active in curbing excessive executive pay. Secondly, companies should publish the salaries of all of their employees so the lower level employees and the public can see the gaps. Clegg also recommended that pensioners earning millions should not get free bus passes or television licenses. A government proposal would be formally published in January. It would incorporate many of the recommendations from the government’s High Pay Commission.
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