11 June 2012
Govt to water down executive pay reforms
The government is set to water down its toughest measure designed to curb excessive executive pay awards, it has emerged.
Business secretary Vince Cable has made provisions to make a rule he previously proposed - which would have involved senior officials facing an annual vote on their pay and bonuses - more lenient.
This idea - which the minister himself put forward in a paper outlining ways in which corporate greed could be tackled - was designed to improve transparency in this area of remuneration.
However, Mr Cable - who is also MP for Twickenham - has now decided that executives should only undergo this process once every three years due to the fact he believes a yearly poll would involve too much red tape for businesses.
However, shadow business secretary Chuka Umunna has described this development as "greatly disappointing".
"At a time when shareholders are becoming more assertive and activist in their approach, the government appears to be turning the other way," he added.
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Posted by Trusha Vyas