We all have a stake in the success of our biggest companies. As customers, we use their products and services every day.

They provide a livelihood and economic security to millions of British workers. The billions of pounds they pay in taxes help to fund the public services on which we all rely.

Alongside our vibrant small and medium-sized enterprises, they form the backbone of our economy.

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At their best, they provide a model for others to emulate; investing in the skills of their workforce, innovating to succeed internationally and looking after the interests of their employees and investors.

On the attack: Under Theresa May's planned reforms, if one in five shareholders complains about ‘fat cat’ pay deals, they will be named in a public register – with the risk that investors will take their money elsewhere

But too often in recent years, we have also seen another, unacceptable, face of capitalism.

A minority of firms are falling short of the high standards we expect of them. Some have deliberately broken rules that are designed to protect their workers.

Others have ignored the concerns of their shareholders by awarding pay rises to bosses that far outstrip the company’s performance.

Most business leaders I speak to abhor this kind of behaviour. They know that when firms listen to their workers and are responsive to their shareholders, they can see the benefits on the bottom line.

The problem comes when a small minority of executives narrowly put their own short-term interests first.

Our future success as a nation, and the security and prosperity of every family in every part of the UK, depends on our economy thriving in the years ahead. That future success is undermined by the excesses and irresponsibility of a few.

When big businesses are brought into disrepute, public trust in an open, free-enterprise economy is weakened. It is bad for individual workers and companies, but also damages the social fabric of our country. It emboldens those on the far Left who hate to see business succeed.

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We may have thought the arguments for a market economy had been won, but there are now some who today advocate sky-high taxes and state control of industry. This old-fashioned ideology has ruined the economy of every country that has tried it.

In Britain, its moderated form led us to economic chaos and stagnation in the 1970s. Today, its full-blooded version has produced the tragic waste of potential we now see playing out in Venezuela.

That is why it has never been more important for those who believe in free societies, free trade and a responsible and well-regulated market economy to speak up.

When I first became Prime Minister, I said that it was vital that we tackled abuses and excess in the boardroom, to restore public confidence in big business.

The package of measures we will publish this week will help to do just that.

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A simple principle runs throughout our proposals: workers and shareholders should have a bigger say and a louder voice in the running of the companies in which they invest their labour and capital.

A minority of firms are falling short of the high standards we expect of them. Some have deliberately broken rules that are designed to protect their workers

What we are proposing makes sense for businesses. If you want to know how well a firm is doing, go and ask those on the shopfloor. The best companies know this, and take their employees’ view seriously.

So an important part of our proposals will be to ensure that those voices are properly heard in the boardroom.

Listed companies will choose the best way to do this in their businesses – but we will set an expectation that they should have in place either an employee advisory panel, or a dedicated board member, or an employee representative on their board.

The view of investors – large and small – on executive pay should be taken seriously.

So by the end of the year, the names of those firms that have faced a shareholder revolt over salaries and bonuses will be published on a new public register.

This will put pressure on companies, because potential investors will be able to see quickly and easily which of them want to give their bosses rewards that their existing shareholders think are not deserved.

It means real transparency – and it will also allow the would-be investors to take their money elsewhere if they consider a pay policy to be unacceptable.

And this is not the end of the road. We will monitor closely how business reacts to these measures, and the others that we will announce later this week.

If we do not see sufficient progress, we reserve the right to take further steps.

These reforms are good for business and good for workers – because everyone has an interest in firms being incentivised to take the right long-term decisions.

The economic opportunities for Britain over the next few years are great. The UK is forging a new, deep and special partnership with the European Union, and setting out to strike new trade deals around the world.

I want to see our businesses, large and small, that make up our diverse economy seize those opportunities in the years ahead.

But the economy we build must be one that truly works for everyone, not just a privileged few.

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The measures we will set out this week to improve how companies operate will help ensure that British businesses can thrive in the future, and that all of us – customers, workers and shareholders – share in the benefits.