Fines For ‘Fat Cats’ Who Put Employees At Risk
22th January 2018.
The prime minister, Theresa May, has threatened punitive fines and pledged “tough new rules” to deal with company bosses who are too occupied with lining “their own pockets”. After the collapse of the construction giant, Carillion, and the subsequent scrutiny of the executives in charge, Ms May is determined to regulate how takeovers affect employees. The Credit Protection Association approves of this renewed transparency in business, as we have seen first-hand the negative impact Carillion brought to our members. Employees suffered the most from the crisis and it’s about time they were put first.
The failed construction and outsourcing giant Carillion operated final salary pension schemes with about 28,500 members and has a pension deficit estimated at between £800 million and £2.6 billion.
Theresa May has promised to take action against “top executives reaping big bonuses for recklessly putting short-term profit ahead of long-term success”.
Ms May will appoint a pensions regulator, who will oversee a number of corporate takeovers, and be given specific powers to issue punitive fines on company directors in cases of clear wrongdoing.
May said: “Companies will also have to explain how they take into account their employees’ interests at board level, giving unscrupulous employers nowhere to hide.”
Business has slowly come more transparent. Afer May 2018 new data legislation will take away the control of consumer data from businesses, and Theresa May wants to see this happen in the event of business takeovers. After the collapse of construction giant, Carillion, this month, and how it exposed the carelessness of the men in charge, change has become necessary. Ms May’s new regulations will input certain barriers and conditions on executive decisions, and make employees the priority. Here at the Credit Protection Association we always encourage full attention to employees, after all a business would not survive without them. We recommend all business owners keep up-to-to-date with your books and perform frequent credit checks on all suppliers and customers. Under Ms May’s new transparency rules, businesses will find themselves facing consequences for complacency, and even fines. If you need help with your cash flow or credit rating, please get contact with CPA by the details below!
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