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Pay ratios: Why firms will need to justify CEO pay

Pay ratios: Why firms will need to justify CEO pay

Business Secretary Greg Clark has announced that all large firms will be required to publish the pay gap between their Chief Executive and an average worker.

All firms with over 250 members of staff will need to explain the difference, which is known as the pay ratio.

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  • AgencyHR
    AgencyHR
    Wed, 13 Jun 2018 2:03pm BST
    And once again the government misses that employment agencies whose pay rates for those they take on under employment contracts to supply as temps (mostly manual and admin in our case) to their clients will be captured in legislation which is entirely inappropriate to them. Our temps pay rates are set by our clients (and AWR), not by us and that will always be the reason for what may be a hugely distorted difference. It creates additional work but won't reveal the true picture and thus has no benefit. The government frequently refers to the benefits of the flexible workforce but fails to recognise the realities of the organisations that play a major role in enabling that flexibility.

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