With CEO pay at big banks soaring, how justified is the government’s push to cut red tape on business?
The UK finds itself at a pivotal moment politically as Labour appears to be rapidly ceding ground to the Greens and Reform following its loss in the recent Gorton and Denton by-election. As the local elections in May loom closer, the direction the government chooses to pursue will be decisive for millions of workers across the UK. The recent signs as to the form this direction will take, however, have not been encouraging.
We recently commented on a number of disappointing decisions to drop both current mechanisms and future plans for holding firms accountable for failing to meet their responsibilities to employees and consumers. Unfortunately, these decisions were justified as necessary steps to boost economic growth by cutting red tape for business.
The High Pay Centre has long argued against this framing that portrays business regulation, stronger unions and greater transparency as antithetical to a dynamic, healthy economy. We unequivocally reject the false choice between economic growth and accountability. Now we need your help to ensure we can continue making that case. Just last week we reported that UK bank CEO pay hit its highest level in over a decade, despite little evidence of exceptional individual performance justifying such awards. This came following a year in which bankers raked in £7bn in bonuses after post-2008 crash restrictions on their bonuses were cut.
This lays bare the scale of the problem: large corporate interests are able to manoeuvre around regulation designed to protect society from the kind of economic downturn that caused inequalities to sharpen and hit the poorest hardest. Given the government’s reluctance to make a convincing case that an economy can function in the interest of workers and businesses simultaneously, 2026 will be a crucial year in the fight against this narrative that the two are incompatible.
This is where we need your help. The fast-approaching AGM season offers us the chance to engage directly with large companies on aspects of their employment practices that do not meet accepted standards. Meanwhile, our CEO Pay and Pay Ratios reports have for years exposed how the corporate approach to compensation is pivotal in driving the growth of income inequality in the UK.
We are seeking £20,000 in additional funding to ensure our small team has the resources to complete these projects. Any donation, big or small, will help us hold big business accountable for runaway executive pay and promote an inclusive employment model that seeks to ensure we all feel fulfilled in our working lives.
We would also like to thank all those that have already become regular donors- your generosity is deeply appreciated by everyone at HPC.