Companies: Executive Remuneration

Lord Bishop of Chester Excerpts

Wednesday 9th November 2011 Lords Chamber

[Baroness Wilcox]

I am interested to hear the noble Lord’s tales of being on a FTSE 100 board. I, too, have been on a FTSE 100 board, so like him I have also served on a committee. We all know that there are problems and that things are not right. The question is how we put it right without damaging Britain’s competitiveness. Those 100 top companies employ so many people and it is very important that we get this balance right. As to his suggestion of worker representatives on company boards in the United Kingdom, we will of course look at this, in the same way that we will look at everything else in the consultation. We would be only too delighted if the noble Lord writes in and makes sure that his views are known on the record.

[The Lord Bishop of Chester]

My Lords, have the Government considered the evidence that the greater the inequality in remuneration, salaries and wages in a society, the greater there tends to be a great underclass in that society, which the prison population amply demonstrates? Any addressing of the issue has to take that into account.

[Baroness Wilcox]

My Lords, the Prime Minister himself has expressed concern about this growing divide. He feels that it is wrong for our country and does not make for a happy country. It is so important that we look again at encouraging the very big companies to make sure that there is transparency, accountability and responsibility in boardrooms today.