Firms deserve Theresa May’s high-pay assault, says IoD

He added: “I know other business people will disagree with me on this, but I have been warning large businesses for three years now that there would come a point at which public outrage about the grotesque excess in top salaries would gain a momentum of its own... and that even a Conservative government would legislate on these matters.

“They have taken very little notice of all the warnings that they have had. I would still hope that there is scope for the business community to show that it is capable of changing its own behaviour. That means restraining itself... if there are complaints in the business community, I would simply say ‘you’ve asked for it’ by ignoring public opprobrium for a decade.”

Stefan Stern, director of the High Pay Centre, said May’s ambitions on pay were “extremely welcome and not before time”. He said pay multiples were “a bit of useful transparency” and added: “One of the benefits of change of leadership is a change of approach. She has surprised a few people. Fair play to the new prime minister for grabbing hold of the issue... Pay is a systemic problem but what it needs is a reality check, someone on the shop floor to say ‘how much?’ ”

Adam Marshall, acting director-general of the British Chambers of Commerce, said: “Many of my members would not be perturbed by having employee representatives on corporate boards.

“Where they would start to worry however is if the Government started to dictate how boards and shareholders took a decision.”

Marshall added that there was also a need for May to “act swiftly to boost the animal spirits of business” through a wider economic programme including infrastructure investment.