The world's largest asset manager wants to rein in the salaries of top execs

BlackRock, the world's largest asset manager, wants the UK's biggest companies to rethink how much they pay their top execs, according to a letter that was first leaked to The Financial Times (FT).In the letter, written by the head of BlackRock's investment stewardship team in Europe, Amra Balic, Blackrock states that pay increases for top executives should reflect those given to the broader workforce."In the case of a significant pay increase that is out of line with the rest of the workforce, BlackRock expects the company to provide a strong supporting rationale," said Balic.The letter, which comes as many UK firms start to think about pay packagers, was sent last week to the chairmen of all companies in the FTSE 350 index.It was accompanied by a set of guidelines that are designed to assist boards as they put their pay policies together.The letter, which will no doubt be welcomed by those that have campaigned against seven-figure salaries, also calls on the chairmen to reduce the generous pension packages that are often given to top executives. The letter says that retirement contributions should also be in line with the rest of the workforce.The FT highlights that total pay for bosses of FTSE 100companies has quadrupled over the past 18 years.BlackRock declined to comment.Join the conversation about this storyNOW WATCH: How much money you need to save each day to become a millionaire by age 65
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