Carillion collapse spurs May to pledge new corporate rules
British Prime Minister Theresa May pledges new rules, including fines, for reckless executives
London — UK Prime Minister Theresa May set out a plan to defend capitalism from capitalists, after the collapse last week of construction company Carillion Plc put at risk public-sector projects from roads to hospitals. In an article for the Observer newspaper, published Sunday, May pledged new rules to deal with executives "who try to line their own pockets by putting their workers’ pensions at risk". She attacked a corporate culture that saw "big bonuses for recklessly putting short-term profit ahead of long-term success". The newspaper said the new rules could include punitive fines for directors, or giving regulators the power to block takeovers that risk pension pots. Carillion’s failure has prompted a debate in Britain about both how companies are run and the extent to which the government relies on businesses to provide services. The UK spends £10.3bn year servicing public-private contracts of the type awarded to Carillion, the National Audit Office said last week. The opposi...
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