The figure that could be withheld could go as high as 20 per cent, Mr Hutton recommended. ?This is going to affect tens of thousands of managers and leaders in the public sector,? he said.
About 9,000 people in the public sector earn more than the �142,500 paid to the Prime Minister, Mr Hutton found. He said: ?The public has a right to know that pay is deserved, fair, under control and designed to drive improving public sector performance, and that there are no rewards for failure.?
Mr Hutton said his ?earn-back? rules should not apply to the Armed Forces, police or judiciary.
He also said the BBC was effectively outside the scope of his review, but hoped the corporation would subscribe to his system voluntarily.
The Fair Pay Review was asked to consider the case for capping public sector executives? pay at 20 times that of their lowest-paid employee.
It concluded that such a cap would not be workable, because it would affect only a handful of executives. Instead, it said public sector bodies should be ordered to publish information about the pay ratio between their leader and median earner, allowing taxpayers to scrutinise the reward and performance of employees.
Mr Hutton also said similar disclosure requirements should be forced on private companies, asking for corporate reporting rules to be changed to require annual publication of a firm?s ?pay multiple?.
The Government should also commission annual ?fair pay reports? on companies? pay rates, and workers should get seats on companies? remuneration committees, he said.
Mr Hutton claimed that new rules would help restrict excessive rises in executive pay. ?Some of the rise in executive pay in the private sector has been accompanied by little tangible improved performance,? he said. George Osborne, the Chancellor, promised to give the report ?careful consideration?.
Ban Ki-moon Henry Kissinger Dennis Kucinich Nelson Mandela Paul Martin
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