'Narrow British lifestyle' is holding city back, warns former BT chairman

Jan du Plessis says London is «falling as a financial capital in almost every way». Photo: Carlotta Cardana/Bloomberg

A 'Narrow British lifestyle' is holding back the City of London, warned the former chairman of telecommunications giant BT.

Ian du Plessis, who currently heads Britain's accounting watchdog, said cultural objections to accepting the change and raising executive salaries has left Square Mile behind rival financial centers like New York and Paris.

He told Bloomberg that the city still has a «specific, rather narrow British way of life» that has caused it to resist reforms such as the introduction of a dual-class share structure.

Grand City said: «It is clear that over the past five, 10 and 15 years, our financial capital has been falling in almost all indicators. Of course, in relation to the USA.

“The reality is that you go across the ocean to the US and they are paid several times more than people here are paid, stratospherically different levels, and they are very successful. . And no one seems to care.»

The comments came after the head of the London Stock Exchange warned last week that Britain was being held back by the campaign against high wages.

Julia Hoggett said that pay disparity between British executives and their American counterparts «hasn't received enough attention» and called for a level playing field to stem the exodus of companies from the Square Mile.

1603 Business investment falls

Mr. du Plessis, who previously headed FTSE 100-owned Rio Tinto, also railed against the influence of fiduciaries, saying they increasingly object to payment reports and are «their own law.»

< p>There is growing concern in the city that shareholder advisory groups are pushing a narrow agenda that could hurt Square Mile.

Consultants advise large investors on how they should vote in companies' annual meetings on issues such as board membership and pay. Proxy consultants are taking an increasingly hard line on issues such as pay, climate change and gender diversity.

Mr du Plessis said publishing the relationship between CEO pay and lowest paid worker is «more one political issue. a tool to try and embarrass companies, boards and their executives.»

London's declining competitiveness has become a major concern after Cambridge tech giant Arm snubbed the UK stock market in favor of New York . Irish construction giant CRH is also moving its listing from the London Stock Exchange to the US.

The city's regulator has proposed new measures to loosen listing rules to make it easier for companies to list. London in an attempt to compete with New York.