The House of Lords has launched a cross-party inquiry into the growing gap between executive remuneration and average worker pay, amid rising public concern over corporate accountability.

The inquiry will examine whether current 'say-on-pay' rules for shareholders are effective and if new legislation is needed to link executive bonuses more closely to long-term social and environmental targets.

"The social contract is under strain," said Baroness Helena Kennedy, who will chair the committee. "We need to ensure that our corporate leaders are rewarded for genuine value creation, not just short-term share price manipulation."

Business lobby groups have warned against 'heavy-handed' intervention, arguing that Britain must remain an attractive destination for global executive talent. The committee is expected to call its first witnesses, including CEOs of FTSE 100 companies, next month.