Lord in Waiting/Government Whip (Lord Katz) (Lab)

My Lords, let accord break out across the Table. I thank the noble Baroness, Lady Bennett of Manor Castle, for tabling Amendment 320. I do not share the disbelief of the noble Lord, Lord Hunt of Wirral, in hearing it, but only because I probably have more than the passing acquaintance with bits of the Green Party manifesto that he perhaps does—and that is the only reason for it. It is right that companies should be sensitive to wider workforce pay when setting pay for those in the boardroom and other senior leadership positions. Company law and wider regulation already address that point. First, the Companies Act requires that UK listed companies must disclose and explain each year the ratio of their CEO’s pay to that of the company’s lower-paid and average-paid employees. Secondly, under the UK Corporate Governance Code, listed companies are asked to review workforce remuneration when setting directors’ pay and engage with employees to explain how executive pay aligns with wider company pay policy. Taken together, these measures provide important transparency and accountability in how UK listed companies deal with pay and incentives across the whole employee base.