The government will announce proposals to crack down on unjustifiable levels of executive pay next month, Deputy Prime Minister Nick Clegg said in a BBC interview on Sunday.
Speaking on current affairs programme, The Andrew Marr Show, Clegg said the government wanted to bring greater transparency to remuneration committees, the boards that decide top executives' salaries, but had no intention of setting pay rates in the private sector itself.
I believe that people should be well paid if they succeed. What I abhor is people who get paid bucketloads of cash in difficult times for failure, the BBC quoted Clegg as saying in a transcript of the show.
The government has plenty of ways to make sure that private sector remuneration committees are opened up, including ensuring employee representatives attend the pay meetings, but no definitive decisions had yet been reached, Clegg said according to the BBC.
Just as we've been quite tough on unsustainable, unaffordable things in the public sector, we now need to get tough on irresponsible and unjustifiable behaviour of top remuneration of executives in the private sector, the broadcaster reported Clegg as saying.
The government would consider bringing forward legislation to enforce the proposals on top executive salaries if required, Clegg said according to the BBC.
(Reporting By Alessandra Prentice; Editing by Matt Driskill)