Making Bernie Sanders Look George H.W. Bush

When Bernie Sanders talks socialism, Jeremy Corbyn says, “Hold my coconut water,” (He doesn’t drink alcohol).

Case in point, his proposal to require that company’s customers and employees have a vote on executive compensation.

But wait, there’s more:  He would put an end to stock options, and force companies to name their highly paid executives:

Customers of Britain’s 7,000 biggest companies would be given the right to vote on the pay of top executives under plans for a clampdown on boardroom pay being considered by Labour.

A report commissioned by Rebecca Long-Bailey, the shadow business secretary, and John McDonnell, the shadow chancellor, calls for an annual binding vote on executive packages to include all stakeholders – including employees and consumers.

Other suggestions include scrapping all forms of share options so that executives are paid only in cash, a ban on golden handshakes and punitive fines for directors of companies that persistently fail to pay the minimum wage. The report also proposes that all companies in Britain with more than 250 staff would have to reveal the names of employees paid more than £150,000 a year. [$190,000.00]


Party sources stressed it would be wrong to assume all the suggestions would make it into the party’s next manifesto but Long-Bailey and McDonnell are well disposed towards five key reforms proposed by Sikka:

  • That executive remuneration contracts in large companies be made publicly available
  • That executive remuneration be in cash, because rewards in share options, shares and perks invited abuses.
  • That pay differentials between executives and employees analysed by gender and ethnicity be published
  • Company law be amended to give all stakeholders the right to propose a cap on executive pay and bonus package
  • The remuneration of each executive at large companies be subject to annual binding vote by a range of stakeholders.

Stakeholders includes shareholders, long-term customers and employees.

Labour believes an attempt to curb boardroom pay is justified by the lack of restraint shown by company boards and the failure of voluntary codes to have any impact on executive remuneration. Sikka’s proposed reforms would apply to the 7,000-plus companies in the UK that have 250 or more employees, accounting for more than 10 million workers.

Good politics and better policy.

I so want Corbyn to become PM.

Unfortunately, what May hands him will be a complete sh%$ show.


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