MPs have launched an inquiry into the salaries of top business executives in the wake of several shareholder revolts over pay.

Prime Minister Theresa May has vowed to decrease the pay gap between CEOs and the average worker, calling it ‘irrational’ and ‘unhealthy’. May’s plans include making shareholder votes on corporate pay binding and publicising the ratio between a CEO’s pay and that of the average worker in the company.

The investigation by MPs comes after both BHS and Sports Direct faced questions over their governance by the Business, Innovation and Skills Select Committee.

Committee chair Iain Wright said it needed to look “at the laws that govern business and how they are enforced”, adding that “good corporate governance shouldn’t be a hindrance to business.”

The average pay of FTSE 100 CEOs rose more than 10 percent in 2015, according to a survey released in August, meaning CEOs now earn 140 times more than their employees. Whilst the findings of the Business, Innovation and Skills committee are not binding on government, it is likely to add to the increasing pressure for change amongst the public.

16/09/2016