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Research by SCM Direct and the Evening Standard reveals that some of Britain's highest-paid CEOs have significantly underperformed the stock market over the past three years, challenging the justification for their substantial remuneration. Alan Miller of SCM Direct stated: “The correlation between pay and share price performance is, at best, weak.” Despite CEO pay soaring by 1,460% since 1978, with current earnings averaging 400 times that of a typical worker, concerns about a “talent drain” from the UK persist. The analysis particularly criticises the fund management sector, where high salaries for executives at firms like Jupiter and abrdn have not translated into shareholder returns. Luke Hildyard, director of the High Pay Centre, said: “This research highlights how executive pay awards are subject to weak governance from supine remuneration committees and generally go far beyond what's sensible or proportionate to business performance or the demands of the role.”

 

London Evening Standard

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The UK and its Five Eyes allies have raised alarms over a China-backed botnet comprising over 260,000 compromised devices globally. The National Cyber Security Centre (NCSC) has urged businesses to bolster their device security, particularly older equipment vulnerable to attacks. Paul Chichester, NCSC director of operations, stated: "Botnet operations represent a significant threat to the UK by exploiting vulnerabilities in everyday internet-connected devices." The botnet, primarily used for distributed denial of service (DDoS) attacks, can also facilitate malware delivery and data theft. Approximately 126,000 of the compromised devices are located in the US, with around 8,500 in the UK. The NCSC advises organisations to implement security updates to prevent their devices from being hijacked.

 

Sky News

The Financial Services Compensation Scheme (FSCS) is facing significant challenges in appointing a new chair and permanent chief executive. Marshall Bailey, the current chair, is set to step down, but the search for his successor has stalled, with Lesley Cowley initially poised for the role but not approved by the Financial Conduct Authority (FCA). An FSCS spokesperson stated: “We expect to announce a new chair shortly, before this term ends.” The delay in appointing a chair has hindered the search for a permanent CEO, with interim chief executive Martyn Beauchamp's term ending soon. The FSCS, established in 2001 to protect customers of failed banks and financial firms, paid out £423m in compensation in the last financial year. The ongoing leadership uncertainty comes at a critical time for the FSCS, especially following recent banking sector upheavals.

 

City AM

The Financial Conduct Authority has warned banks and building societies that they could be fined if they fail to ensure their customers receive “fair value” on savings products. “We will expect a clear explanation should we identify that a firm has changed its savings rates significantly more quickly and fully in response to interest rate reductions, compared to previous interest rate increases,” it said.

 

Financial Times

PYMNTS

City AM

Daily Express

The Competition and Markets Authority (CMA) has cautioned 17 prominent UK fashion brands to reassess their marketing practices regarding green credentials. The CMA expressed concerns about the potential misleading nature of broad eco claims and the inclusion of non-eco products in "eco" ranges. Although no enforcement action has been initiated, the CMA has provided a practical compliance guide to assist brands in adhering to consumer law. Hayley Fletcher from the CMA stated: "This hands-on guide will allow fashion retailers to really get to grips with their obligations under consumer law - and also means there's no excuse for using misleading green claims.”

 

GOV.UK

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Google's parent company, Alphabet, has requested that a London tribunal dismiss a mass lawsuit alleging it abused its dominance in the online search market. Valued at up to £7bn ($9.3bn), the lawsuit is part of a series of antitrust cases against Google, including one in the US regarding its online advertising practices. Nikki Stopford, a consumer rights campaigner and class representative, claims Google's dominance inflates search advertising costs for businesses, which are then passed to consumers. The lawsuit references a €4.34bn ($4.5bn) fine imposed by the European Commission in 2018 for restrictions on Android manufacturers.

 

Daily Mail

ING has announced stricter financing policies for upstream oil and gas companies, effective from 2026. The bank's CEO, Steven van Rijswijk, stated: "If you're a pure play upstream oil and gas company... we will stop financing you altogether." This decision could impact around 25 clients, representing approximately €1bn in lending. ING aims to phase out upstream oil and gas financing by 2040 and will not finance new oil field developments or LNG export terminals. The bank's assessment of 2,000 clients revealed that a third lack sufficient disclosure on their transition plans, complicating evaluations. From 2026, financing conditions will tighten for companies not aligned with decarbonisation goals set by the 2015 Paris climate accord.

 

Reuters

After more than two years of industrial action, train drivers across England, Scotland, and Wales have accepted a new pay deal, marking the end of their prolonged strike. Members of the Aslef union voted in favor of a 15% pay increase spread over three years, with backdated and pensionable rises of 5%, 4.75%, and 4.5%. The strikes, which began in July 2022 due to disputes over pay and working conditions, caused widespread railway disruptions. Aslef’s General Secretary, Mick Whelan, emphasised that the deal was reached without concessions on working conditions. The new Labour government played a key role in brokering the deal after taking over pay talks in July. While the union celebrates safeguarding working practices, some critics, including Conservative officials, argue that the deal does not address necessary railway reforms.

 

BBC News

The Institute for Employment Studies reports that the UK has seen a significant decline in its workforce, with 800,000 fewer individuals in work or seeking employment since the onset of the Covid pandemic. This "participation crisis" has resulted in a £16bn annual loss in tax receipts, highlighting the economic impact of the workforce contraction. Tony Wilson, the institute's director, noted: “This situation has parallels with the one Britain found itself in during the 1980s.” The report indicates that the UK is an outlier among developed nations, with employment rates falling rather than rising post-pandemic.

 

The Guardian

Dan Harris founded Neurodiversity in Business (NIB) to enhance opportunities for neurodivergent individuals in the workplace. He stated: “I set up NIB because I wanted to change the world that my little boy… will be growing up in.” The charity aims to reform recruitment processes and promote neurodiversity policies within businesses. Currently, unemployment rates for neurodivergent individuals range from 20% to 40%, significantly higher than the general population's 4.1%. Harris advocates for both direct and inclusive policies, stressing the importance of communication to reduce stigma. He believes that younger generations are more compassionate and emotionally intelligent, which can foster a more inclusive work environment. Despite concerns about a backlash against diversity policies, Harris remains optimistic, stating: “The future is neurodivergent.”

 

City AM

Harland & Wolff shareholders have accused the shipyard and both major political parties of misleading investors over its financial future. The Belfast-based firm went into administration this week after the Labour government rejected its £200m loan guarantee application. Shareholders are opposing a pre-pack administration deal that would wipe out their investments, while a collective owning 30% of the company plans to boycott an upcoming meeting.

 

City AM

Games Workshop has encountered significant shareholder dissent, with nearly 21% voting against its remuneration report and 27% opposing its remuneration policy at the recent AGM. This backlash follows the company awarding its CEO, Kevin Rountree, a bonus of 150% of his base salary, amounting to a total pay of £1.87m. The company stated: “The current policy does not allow for any alternative compensation mechanism,” highlighting its unique approach to executive pay. The AGM also marked the departure of CFO Rachel Tongue after 27 years, with Liz Harrison set to take over. The board has committed to engaging with shareholders to address their concerns.

 

City AM

Tupperware Brands Corporation, known for its iconic food storage containers and "Tupperware parties," has filed for bankruptcy in the US. Founded 78 years ago, the company is seeking approval to find a buyer as part of its efforts to protect the brand. Chief executive Laurie Ann Goldman stated: "Over the last several years, the company's financial position has been severely impacted by the challenging macroeconomic environment." Despite a brief sales boost during the early COVID pandemic, Tupperware has faced a steady decline since 2018, struggling to compete with cheaper, more environmentally friendly alternatives.

 

Sky News