Companies should be forced to reveal how much their top earners receive in relation to average employees, Labour has said.
After Vince Cable wrote to companies Shadow Business Secretary Chuka Umunna said the government had "caved in" by failing to introduce promised shareholder votes on executive remuneration.
“We need more transparency, accountability and fairness in how executive pay is set," he said.
"An important step in this direction would be for firms to publish the ratio of the pay of top earners compared to average employees as well as putting employee representatives on remuneration committees.”
More top news
An orangutan who has lived in a zoo for the past 20 years, can be granted basic human rights, a court in Argentina has ruled.
Socialite Tara Palmer-Tomkinson has been cautioned by police after a 'disturbance' at Heathrow Airport.
The NHS is to set up 11 centres to unlock the secrets of DNA and help develop tests and drugs to target cancer and rare genetic diseases.