HC Deb 06 November 1969 vol 790 cc1157-8
7. Mr. Hugh Jenkins

asked the Secretary of State for Employment and Productivity whether she is aware that the average salary of managing directors of companies with a turnover of under £1 million is £5,965 and that of companies over £100 million is £26,523 ; and if she will refer this differential to the National Board for Prices and Incomes.

Mr. Harold Walker

I have seen the article in the October issue of The Director in which these figures appeared. I do not think that a general reference concerning salaries of managing directors would be of value.

Mr. Jenkins

Does my hon. Friend appreciate that there is no hope of even a voluntary prices and incomes policy working while some of these arrogant and opinionated directors each take out of industry anything up to 50 times the amount which people working in the industry earn?

Mr. Walker

The question of salaries at this level in the private sector was considered by the N.B.P.I., in report No. 108 which pointed out that the salaries of these individuals can be judged only in relation to the salary structure in which they are placed.

Mr. Dudley Smith

Would the hon. Gentleman agree that if we take into account the penal rates of taxation, senior executives, directors and managing directors of British companies are the worst paid in the world?

Mr. Walker

I have no evidence that would lead me to believe that they are the worst paid in the world.

8. Mr. Hugh Jenkins

asked the Secretary of State for Employment and Productivity whether she will report to the House the outcome of five cases of higher boardroom salaries being examined by her Department ; which are the two that have been cleared ; and what action is being taken on the other three.

Mr. Harold Walker

Following correspondence with the companies, it has now been decided to take no further action in any of these cases. I do not propose to disclose the names of the individual companies concerned.

Mr. Jenkins

Is not my hon. Friend being unnecessarily soft with the rich and will he not soak them more?

Mr. Walker

The Chancellor has no doubt got this point in mind. [HON.MEMBERS : "Oh."] I can only repeat that salaries at this level in the private sector were considered by the N.B.P.I. which made recommendations. My right hon. Friend said earlier that she would consider consultations with the T.U.C. and C.B.I. on the practicability of a reference to the Board of salary structures of individual firms.