First published on Wed 7 Apr 2021 12.43 EDT
Vince Cable has said government policies aimed at tackling the vast pay gap between chief executives and their staff do not address the root cause of the issue and in some cases may have made the problem worse.
The former business secretary said measures to increase the transparency of executive pay had backfired by sparking a one-upmanship between large corporations eager to offer the most lucrative pay.
Cable added that recent measures that forced the disclosure of pay ratios may also fail to expose the true nature of a company’s remuneration culture depending on the industry.