Letter: Democracy in the City

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The Independent Online
Sir: Andreas Whittam Smith is much too pessimistic in concluding that there is no answer to the corporate greed displayed by the directors of our leading companies ("Close the wage gap or everyone will suffer," 19 August).

There is clearly no incentive for fund managers acting on behalf of institutional investors to change the present system for determining directors' pay, since they too are on the same upwardly moving salary escalator.

The solution is to democratise the investment institutions - the pension funds, the unit trusts and insurance funds - so that they represent the interests of the wider community whose money is invested with them and whose interests they should be required to serve.