Government Explores Fat Cat Bonus Share with Workers

The Government is looking into larger companies having to share profits and ‘fat cat’ bonuses with their staff.

Proposals in a report by the business select committee suggests a need for change after a £75 million bonus was given to the boss of Persimmon Homes.

Other suggestions in the report are:

• Staff to attend company pay meetings
• Reduce variable pay bonuses
• Benefit staff with profit-sharing schemes
• Cap bosses pay
• Pay schemes to be monitored by a new financial regulator

Rachel Reeves Labour MP who chairs the committee said, “Pay packages for CEO’s are ridiculous and companies that do well should share the profit with the workers this will help our economy to operate and work better”.

The report suggested that company executives were still receiving elaborate pay packages despite Theresa May’s word to address the situation.

Chief executives pay has risen 4 times as quick as their employees over the last 10 years.

Comment

We have no problem with senior executives getting substantial pay and awards if their performance is outstanding.  That said, we believe that any firm that has employees on minimum wage or a pay level that leads them to need welfare benefits should be scrutinised. 

No one is worth £75m!  Any high pay executive can cause social, workplace and economic divide.  If a typical FTSE 100 chief exec can earn an average UK workers salary in just under 3 days. Is this right?  Yes, pay should be commensurate with qualifications, experience, investment, the pressure of decision making and the hours that you work but if a boss earns in 3 days what staff earn in a year, the balance is simply not right.