The MP criticised proposals by Stephen Byers to introduce Companies Act regulations requiring UK quoted companies to publish individual directors’ pay packages in annual reports.
These would have to include the role of remuneration committees and information on performance linkage, directors’ service contracts and compensation payments.
Byers revealed his plans in the Commons and told MPs he will decide whether to legislate for a compulsory shareholder vote in the light of recommendations resulting from the Company Law Review.
Byers said he would be looking for further evidence that remuneration committees are composed exclusively of independent non-executive directors and that companies are complying with the spirit of existing best practice on accountability and that shareholders are involved.
‘Companies and shareholders around the world increasingly recognise the importance of a proper link between pay and performance in the boardroom,’ said Byers.
But Heathcoat-Amory protested that this was ‘additional company expense for absolutely no gain at all’.
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