04 Jul '11, 12pm

Why a more effective corporate form is inevitable | David Boyle on his new report with @AndrewSimms_nef on pay ratios

Why a more effective corporate form is inevitable | David Boyle on his new report with @AndrewSimms_nef on pay ratios

Companies that have narrower pay ratios are more efficient than those riddled with inequality. It's time businesses woke up to the potential of a more equitable way of working. By Images of Money Tweet The bad news : chief executive pay in the FTSE 100 increased by 55 per cent last year alone, accelerating the creation of an inflationary class of ubermensch , with huge consequences for social cohesion. The good news : a more effective, imaginative and flexible corporate form – the mutual – increased by 25 per cent in the UK economy last year. Both these facts are relevant to The Ratio , the new report published by nef by myself and Andrew Simms, which suggests forcing companies – and especially those bidding for public service contracts – to reveal the ratio between their bottom and top pay levels. We may not be able to legislate to drag the ratio back down to 1:20, which ...

Full article: http://www.neweconomics.org/blog/2011/07/04/why-a-more-ef...

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