Ed Miliband plan to take fight to Tories over executive pay deals

LABOUR yesterday called for “more responsible and better capitalism” and policies to tackle excessive executive pay as the party tried to recover from a difficult week for its leader Ed Miliband.

Shadow business secretary Chuka Umunna said increasing transparency was the key to addressing high salaries.

Labour’s measures include increasing transparency by simplifying remuneration packages. Companies should also publish a pay ratio between the highest paid executive and the company average – and the government could publish a league table highlighting the biggest pay gaps. Accountability could be promoted requiring investors and pension fund managers to disclose how they vote on remuneration deals. Labour also wants a repeat of the bank bonus tax – to increase “fairness”. Umunna said excessive executive pay was “symptomatic” of the “kind of capitalism that has grown up in this country over the past 30 years”.

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His comments echoed those of Labour leader Miliband who has challenged David Cameron to match Labour’s pledges on the issue.

Miliband said: “If one of the big battlegrounds of British politics is going to be who is really going to take action on executive pay, I say ‘bring it on’. I promise you they are not going to steal a march on us in this area.

“Does anyone really believe that David Cameron came into politics to create a more responsible capitalism? The public are not going to buy it.”

Miliband’s comments follow criticism that he does not have a credible economic plan. Last week his former adviser, Lord Glasman, said the party “show[s] no signs of winning the economic argument” under Miliband.

Miliband defended his leadership insisting he had a “very clear plan” for the future.