Both the BBC and the Church Times have reported that the ecumenical Church Investors Group (CIG) – a Christian investment group – has produced a report which recommends that no executives should be paid more than 75 times the level of the lowest earners.
The CIG commissioned two theological professors to write ‘The Ethics of Executive Remuneration: A Guide for Christian Investors’, in response to public distaste for the high salaries and bonuses paid to bankers despite the economic crisis. The report advises that Christians should consider withdrawing their investment if the worst-offending companies don’t change their pay policy, and they should find out how much the lowest-paid workers earn before investing in any business.
Comment: While, from an egalitarian standpoint, that course of action has much to recommend it, it will be interesting to see the outcome of this report. For example, how many investors will be keen to go against ‘the logic of the markets’ and own up to being principled and ‘Christian’? Although this may yet happen, the weight of historical precedent is against it.