Theresa May vows to protect vulnerable pensioners whose savings are destroyed by fat-cat tycoons
The likes of Sir Philip Green and other tycoons face being asked to publish their sky-high pay as part of the wide-ranging reforms
THERESA MAY last night vowed to protect pensioners whose savings are destroyed by the “mismanagement” of fat-cat tycoons as she urged British business to clean up its act.
Unveiling a corporate governance crackdown, the PM said the Government would look at what could be done to safeguard the retirement pots of thousands of hard-working Brits.
And the Government revealed the likes of Sir Philip Green and other secretive tycoons face being asked to publish their sky-high pay as part of the wide-ranging reforms.
Ministers will today say they want privately-owned firms to adopt the same standards as companies listed on the stock market to create “an economy that works for everyone”.
In a statement last night Theresa May said: “The growth of our privately held companies should be celebrated and supported as they are a vital part of our strong economy.
“We have, however, seen an irresponsible minority of privately-held companies acting carelessly – leaving employees, customers and pension fund beneficiaries to suffer when things go wrong.”
The comments were last night seen as another blast at Sir Philip, currently facing demands to pour £350 million into the pension fund at BHS. The high street chain collapsed earlier this year, 12 months after he sold it for £1 to a twice-bankrupt entrepreneur.
He took around £400 million out of the business in bumper dividends a decade ago. Friends of Sir Philip have repeatedly insisted he has done nothing wrong.
Other proposals in today’s reforms include forcing companies to publish the difference in pay between their chief executives and average workers – as revealed over the weekend.
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The PM also wants to ensure “workers’ voices” are heard in the boardroom when setting pay and bonuses. will spell out the Governments plans in the Commons today as he launches consultation on corporate reform.
He will point out that asking public companies to publish details on directors pay is “key” in providing information about a way business in being run.
And he will say some privately held businesses “already recognise” that adopting similar standards can help build their reputation.
The Institute of Directors last night welcomed the Government’s push to shine a light on privately-owned firms.
IoD head of corporate governance Oliver Parry said: “The Government is right to bring a new focus to the corporate governance of unlisted companies, which at the moment is a bit of b black box - we don’t know what’s going on in there until something goes wrong.
“Large private companies can employ thousands of people, and frankly they need to be more transparent about how their boards operate.”
Tim Hames director general of the British Venture Capital Association, urged his members to realise there was “nothing to fear” from embracing the Government’s challenge.
He said: “The private equity industry’s experience with its own independently overseen guidelines shows that non-listed companies have little to fear and much to gain from embracing more challenging standards of corporate governance.
“While there is no ‘one size fits all’ approach out there, it is equally true that there is not a credible ‘no size fits us’ argument that should be made earlier.”