BlackRock to 300 UK businesses: Limit execs' salaries or else...
BlackRock has a stake in every FTSE 100 company, and many of Britain's largest businesses have been sent a latter by the U.S. firm demanding cuts to massive pay rises for bosses.
The fund manager said it would only approve raises based on a similar deal being given to workers on a lower income, according to the letter.
BlackRock currently has over $5trn worth of assets on its books, and carries a major influence in boardrooms globally.
Its head of investment in Europe Amra Balic said in the letter that salaries should be directly linked to performance.
"Executive pay should be strongly linked to performance, by which we mean strong and sustainable returns over the long-term, as opposed to short-term hikes in share prices," she said. The letter was first reported by The Sunday Times. ■