LONDON, June 10 (Xinhua) -- Bosses of companies in Britain employing 250 or more staff will have to declare how much they are paid under a new government law, the Department for Business, Energy and Industrial Strategy (BEIS) announced Sunday.
Companies will have to justify pay gap between bosses and their workers under a package of reforms to hold big businesses to account for the salaries they pay.
Under new legislation for the first time ever, listed companies will legally be required to annually publish and justify pay difference between their CEOs and their staff.
Directors of all large companies will also have to set out how they are acting in the interests of employees and shareholders.
The requirement for firms to legally publish pay ratios follows concerns some CEOs have been receiving salaries out-of-step with company performance.
The new regulations are part of a package of reforms which will hold big businesses to account for the salaries they pay, while giving employees a greater voice in the boardroom.
Business Secretary Greg Clark said: "One of Britain's biggest assets in competing in the global economy is our deserved reputation for being a dependable and confident place in which to do business.
"We understand the anger of workers and shareholders when bosses' pay is out of step with company performance. Requiring large companies to publish their pay gaps will build on that reputation by improving transparency and boosting accountability at the highest levels."
Matthew Fell, policy director at the Confederation of British Industry (CBI) said: "This legislation can help to develop a better dialogue between boards and employees about the goals and aspirations of their business, and how pay is determined to achieve this shared vision."
The measure will be put before the British Parliament Monday with the regulations coming into effect in January, 2019.