Curb hidden excessive pay with 'double figure', says High Pay Centre

In a report to be published later this week, the High Pay Centre (formerly the High Pay Commission) will propose a double figure for all executive rewards.

It now believes condensing all aspects of executive remuneration into one figure, as proposed by business secretary Vince Cable (pic), would be too simplistic because executives may receive pay they were awarded in one year much later on – so it has recommended a double figure instead.

The first number details pay awarded in any one year, and the second predicts payouts for the executive based on performance.

Pension payments from employers should be included in the ‘pay awarded’ figure, while in-lieu-of-pension payments – typically around £100,000-£200,000 a year – must be detailed in the ‘predicted payouts’ figure, according to the think-tank.

But the organisation does not believe total pension accrued over a working life should be included in either of these figures.

Deborah Hargreaves, chairman of the High Pay Centre, said: “Some people might not agree with pension pots being left out of the equation, but we feel it would be misleading to include that information in either of the figures we’re proposing.

“But getting more transparency on actual pension payments made by employers, by including them in these two figures, would be a big step forward.”

Tom Powdrill, head of communications at PIRC, said the idea sounded sensible.

“Currently, disclosure on pension payments is not at all clear, so this would be very helpful for public understanding,” he added.

BIS will consult on the details of the single-figure policy over the coming months.