LONDON, Jan. 1 -- British new pay ratio regulations came into force on Tuesday, aiming to enhance the salary transparency between bosses and ordinary employees.
According to a statement issued by the Department for Business, Energy & Industrial Strategy, the pay ratio regulations will apply to large Britain listed companies with over 250 employees, which are required to be disclosed annually.
The first statutory disclosures will be issued from the start of 2020, which will cover CEO and employee pay awarded in 2019.
The new regulations coming into force meant that "for the first time, the UK's biggest companies will have to disclose and explain every year their top bosses pay and the gap between that and their average worker,"said in the statement.
Greg Clark, secretary of state for Business, Energy & Industrial Strategy, said that:"The regulations coming into force today will build on our reputation by increasing transparency and boosting accountability at the highest level."
It will"give workers a stronger dialogue and voice in the boardroom and ensure businesses are accountable for their executive pay,"he added.
He highlighted the new regulations were a crucial part in the wider corporate governance upgrades, added that "we are bringing forward as a government to help build a stronger, fairer economy that works for businesses and workers."
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