Growing public anger over executive pay increases the likelihood of reputational harm to businesses and ‘can lead to public protests like those carried out by UK Uncut against the Top Shop boss Sir Philip Green’s alleged tax avoidance’, according to the High Pay Commission.
‘As pay at the top rises, so too does disillusionment and distrust of business among the public. It is evident in the protests against tax avoidance,’ the Commission said in Cheques With Balances: why tackling high pay is in the national interest.
‘Such reputational damage is not accompanied by much economic gain,’ a Financial Times editorial noted today.
The Commission, an independent inquiry into ‘high pay and boardroom pay’, was established by the left-of-centre pressure group Compass with the support of the Joseph Rowntree Charitable Trust. It urged a move away from ‘an economy predicated on a flow of rewards to the top’ and called on the government to ‘set a tax regime that incentivises the sort of behaviour that leads to market success and not market failure’.
Growing public anger over executive pay increases the likelihood of reputational harm to businesses and ‘can lead to public protests like those carried out by UK Uncut against the Top Shop boss Sir Philip Green’s alleged tax avoidance’, according to the High Pay Commission.
‘As pay at the top rises, so too does disillusionment and distrust of business among the public. It is evident in the protests against tax avoidance,’ the Commission said in Cheques With Balances: why tackling high pay is in the national interest.
‘Such reputational damage is not accompanied by much economic gain,’ a Financial Times editorial noted today.
The Commission, an independent inquiry into ‘high pay and boardroom pay’, was established by the left-of-centre pressure group Compass with the support of the Joseph Rowntree Charitable Trust. It urged a move away from ‘an economy predicated on a flow of rewards to the top’ and called on the government to ‘set a tax regime that incentivises the sort of behaviour that leads to market success and not market failure’.
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