Unite calls for greater legal powers for shareholders to curb
‘greedy’ boardroom pay
28 October 2011
The government needs to give shareholders stronger legal powers
to curb excessive boardroom pay, Unite, the largest union in the
country, said today (Friday 28 October).
The call came as a new survey by Income Data Services revealed
that directors of FTSE 100 companies had received a 49 per cent pay
rise in the last year, while the average employee was enduring
either pay cuts, pay freezes or pay rises below the rate of
inflation.
Unite general secretary Len McCluskey said: ”This damning report
shows just how much these pampered directors are removed from the
lives of working people struggling to hold on to their jobs and
paying soaring energy, food and transport costs.
”This is an astonishing display of boardroom greed. It is
exactly why people have been occupying St Paul’s to protest against
the behaviour of the City elite and a government which is turning a
blind eye to these abuses.
”Institutional shareholders need to exercise much greater
scrutiny and control of directors’ pay and bonuses.
”The government should be strongly considering giving
shareholders greater legal powers to question and curb these
excessive remuneration packages.
”Directors of top companies should not be getting these
outrageous packages, especially those heading up companies that are
failing to perform. It’s obscene and shows that the City has learnt
nothing during the financial troubles of the last four years.”
Unite backed the TUC’s call for worker representation on company
remuneration committees to bring a much-needed sense of reality to
directors’ pay.
ENDS
Notes to news editors:
For further information please contact Unite communications
officer Shaun Noble on 07768 693940
