Companies should be forced to publish details of the pay gap between executives and an average employee as part of a plan to tackle excessive boardroom remuneration.
The independent High Pay Commission, which is due to publish its report tomorrow, is expected to recommend a number of measures to increase transparency and reduce incentives for companies to excessively reward senior management.
Sources close to the commission said these are likely to include proposals to simplify pay structures so total reward packages can't be disguised from shareholders, and also to put employees on company remuneration committees.
The report is expected to be welcomed by the Labour leader Ed Miliband.
In September, the Business Department published a consultation paper which suggested giving shareholders additional information about how executive pay relates to that of the rest of the workforce.
It also proposed that companies should provide “fuller information on the relationship between pay and company performance”.