UK- The TUC is urging the government to make it compulsory for companies to disclose more extensive information on directors’ remuneration including the type and size of pensions if they differ from those offered to employees.

The message comes as research by the union shows directors’ pay has risen at three times the rate of their employees between 1994 and 2001. The TUC, which represents more than 7m workers in the UK, is unhappy with the lack of disclosure about the difference in pensions offered to directors and employees.

“As has been highlighted in recent public debate on company pension schemes, some companies offer generous, risk free pensions schemes to their directors while their staff are offered inferior and riskier schemes. Given the ability of directors to save for retirement compared to their employees, this is impossible to justify,” it says.

It goes on to argue that when the type of pension scheme offered to directors differs to that offered to staff, some explanation should be given. Different contribution and accrual rates for directors and other employees should be explained in the remuneration report which the TUC maintains should also cover any other benefits on top of pension payments that directors receive.

Says TUC General Secretary John Monks: “we welcome the Government's proposals for shareholder votes on directors' pay but want to see more disclosure to encourage restraint. This isn't the politics of envy, just a drive for openness based on what makes good business sense."