On July 11 Theresa May launched 
her subsequently successful campaign to become leader of the Conservative Party and, by extension, Prime Minister of the UK, under the slogan “A country that works for everyone, not just the privileged few”. Having outlined her broader vision for the economy, Ms. May’s speech quickly turned to matters of corporate governance under the themes of “Putting people back in control” and “Getting tough on corporate irresponsibility”.
In detailing her priorities, Ms. May vowed to push for employee representatives on boards and to make shareholder votes on executive remuneration legally binding, moves which are likely intended to address growing inequality and perceived public distrust in the establishment, business and politicians.
Perhaps unsurprisingly, industry response to Ms. May’s proposals has been generally cool, particularly as regards the contractual implications of a binding say-on-pay vote and the potential for employee representatives to believe they were co-managers of a business.
The UK Institute of Directors, however, expressed the view that placing workers on boards “can bring benefits in terms of better employee engagement”, a stance supported by a spokesperson for FirstGroup plc, currently the only FTSE 350 company with an employee director on its main board.
Somewhat ironically, given that her government’s first priority will be negotiation of the UK’s exit from the European Union, Ms. May’s proposals have a distinctly continental flavour – binding say-on-pay votes have already been legislated for in Switzerland and are currently being debated by French politicians, while employee directors are the norm across the continent.