Theresa May vows crackdown on bosses who 'line their pockets' while workers lose out
2 min read
Theresa May has launched an extraordinary attack on irresponsible bosses who “line their own pockets” - amid claims they could be hit with huge fines.
Executives could be in line for financial punishments if their pension schemes go bust under plans being considered by Whitehall, according to the Observer.
It comes after construction giant and public contract holder Carillion collapsed last week putting tens of thousands of jobs at risk and with a potential pension scheme deficit of £900m.
In an article for the Observer, Mrs May said the Government will lay out “tough new rules” in the spring including forcing firms to reveal the pay ratios between bosses and their workers.
They will also have to explain how employee interests are considered at board level so that “unscrupulous employers” have “nowhere to hide”, the Prime Minister added.
And the paper said that one plan under consideration for the Government white paper - due in March - is for pensions bailouts to be paid for by clawing money back from executive bonuses.
“In the spring, we will set out new tough new rules for executives who try to line their own pockets by putting their workers’ pensions at risk - an unacceptable abuse that we will end,” Mrs May explained.
“Too often, we’ve seen top executives reaping big bonuses for recklessly putting short-term profit ahead of long-term success.
“Our best businesses know that is not a responsible way to run a company and those who do so will be forced to explain themselves.”
Meanwhile, Mrs May launched a staunch defence of the use of private contractors to build public infrastructure or provide public service contracts.
She said private firms play “a valuable role helping the public sector" and quoted former prime minister Tony Blair in arguing that private initiatives could make the NHS much more efficient.
On Carillion, Mrs May said the Government would not write directors a “blank cheque”, and insisted it would be “the shareholders of the firm, not taxpayers, who pay the price for the company’s collapse”.
Ministers have announced a fast-track probe into the firm and the behaviour of its bosses both past and present. Bonuses and golden goodbyes which top executives were in line for have meanwhile been blocked.
PoliticsHome Newsletters
PoliticsHome provides the most comprehensive coverage of UK politics anywhere on the web, offering high quality original reporting and analysis: Subscribe
