UK companies must publish pay ratios under new law
UK publicly listed companies will have to reveal how much more their chief executives are paid compared with the average employee, under a package of government reforms that will come into effect by June 2018. Firms who face significant shareholder opposition to executive pay deals will be named on a new register overseen by the Investment Association. Publicly listed companies will also have to ensure that employees are better represented at board level, a requirement that will be included in the UK Corporate Governance Code. The government has also asked the Financial Reporting Council to draw up a voluntary set of corporate governance principles for large private companies. UK Prime Minister Theresa May attacked firms who hand bosses excessive pay “as the unacceptable face of capitalism” and “damaging the social fabric of our country”. However, critics called the reforms “feeble”, and accused the government of backtracking on plans to force employee representatives onto company boards, and to require a shareholder vote on executive pay. (BBC)
Australian government to crack down on banking industry executive pay
The Coalition government plans to crack down on executive pay in the banking industry by giving the regulator power to cap salaries and delay bonuses by years. While major banks have resisted the move, Prime Minister Malcolm Turnbull said he will push ahead measures to prevent bonuses being paid all in one hit. Mr Turnbull said the plan was “modelled on measures that were taken in the United Kingdom”. Under the proposed legislation, the banking regulator, the Australian Prudential Regulation Authority, would be given greater powers. It would be able to force bank boards to adjust their remuneration policies if they produce inappropriate outcomes, to push directors out of the industry for bad behaviour, and to force all senior executives in the banking industry to register with the regulator so it can keep records of their behaviour. (Guardian)
Environment
Patagonia joins forces with activists to protect public lands
Environmental activists, Native American groups and a coalition of outdoor retailers have vowed to redouble their efforts to protect public lands, after US interior secretary Ryan Zinke recommended the downsize of some national monuments. President Trump has voiced an eagerness to revise federal land holdings. Outdoor retailer Patagonia, which has spearhead the industry initiative said it would continue its advocacy efforts and “take every step necessary, including legal action, to defend these public lands”, explained Hans Cole, Director of Environmental Activism. Environmentalists have warned that the one site could see expanded uranium mining and oil and gas drilling, while Native American groups have feared violations of native cultural sites, which are protected under state and federal law. (Guardian)
Corporate Reputation
Apple CEO tours the US advocating ‘moral responsibility’
Tim Cook, Apple’s chief executive, has been touring across the country, focusing on topics usually reserved for politicians: manufacturing, jobs and education. After a day in Ohio to visit CTS, an Apple supplier, he flew to Des Moines to announce a $1.3 billion investment plan into a renewable energy-powered data centre. Arriving in Austin, he announced the city’s Community College will start offering Apple’s curriculum to teach coding and create apps. Mr Cook is one of the many US business leaders who appear to use their company as a platform to wade into larger social issues. He said his company had “a moral responsibility to help grow the economy, to help grow jobs, to contribute to this country and to contribute to the other countries that we do business in.” He added, “I think there’s still probably a more significant group that feels my sole responsibility is to Wall Street.” (NY Times)
Technology & Innovation
Audi designing solar roof for future electric vehicles
German carmaker Audi has teamed up with a solar-cell specialist to develop a solar roof to extend the range of its electric vehicles (EVs). Thin-film solar cells will be integrated into a panoramic glass roof by Alta Devices, a subsidiary of Chinese firm Hanergy. The first prototype is due for completion by the end of 2017. Audi is aiming for almost the entire roof surface to be covered with solar cells in the future, with the generated electricity used to supply a vehicle’s air-conditioning system and seat heaters. The solar energy has the potential to directly charge the traction battery. Audi is not the only major car manufacturer to develop solar roof technology for its EV range. Late last year, Tesla revealed it would feature its own solar roof panel products in some form on the recently launched Model 3. (edie)
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