01 December 2011
CBI calls for corporate governance changes
The government should implement changes to the UK's employment law to make the executive pay system fairer.
That is according the Confederation of British Industry (CBI), which has called on the Conservative-Liberal Democrat alliance to reform legislation on order to enhance the country's corporate governance rules.
In response to the administration's recent analysis of executive remuneration, the business group - which represents the interests of more than 240,000 companies across the nation - has insisted pay at this level must be "squarely linked to performance with no rewards for failure".
Furthermore, it believes there are numerous steps the coalition could take to enhance transparency in this area.
Katja Hall, chief policy director at the CBI, labelled the present system "robust" when it is "applied consistently and effectively", but insisted there are ways it can be strengthened further.
"We believe remuneration committees should be bolstered by widening the pool of non-executive directors that serve on them," she added.
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Posted by Trusha Vyas