CLAMP FAT CATS PAY.

A major UK shareholder Hermes Investment Management, set up in 1983 to manage BT pension scheme and manages funds worth around £34billion, calls for clamp on Fat Cat pay.

The Hermes Investment Management will issue a document with  ground-breaking proposal referring to the chairs of FTSE 350 firms.

It is thought that this is the first time a cap on all pay as well as individuals was called.

Dr Hans-Christoph Hirt, co-head of Hermes stewardship arm EOS said: "There are significant problems with executive remuneration in the UK, including the complexity of packages, a weak link between pay and corporate performance and in a number of cases executive quantum. The public has lost trust about the government of executive pay.

"Now is the time for investors to articulate their expectations and work together with companies to reform executives remuneration ahead of the voting season 2017.

"We want to see simpler packages lower variable pay, higher shareholding requirements and stronger accountability of remuneration committees."

The proposal includes firms to publish the figure their chief executive's pay would not exceed, which would  be discussed with investors.

Legal & General chief executive Nigel Wilson said: "The average pay ration between FTSE100 chief executives and employees had jumped from 47.1 in 1998 to 129.1 last year, but despite growing disparity there is little evidence ratcheting up executive pay leads to better company performance."

It is great that someone of that level admits and points out the unbelievable situation of which everyone is aware of but nobody speaks openly about it leave alone doing something about it.

Although PM May keeps talking about reform but will it come about. After all those £4 and £5billion plus  bonuses for chief executive has to be reflected in consumer prices. It would be a great relief if those sky-high, not-really-earned pay packages would be brought down to earth but will it?

The chief executives have not only drastically increased their remuneration but also multiplied at an incredible rate.

Furthermore, a number of chief executives are employed on several firms and committees which brings another pay packages. No one can effectively work on two or more top positions. It should also be looked into it and laws brought out against it.