FTSE-100 to offer vote on directors’ pay

A survey of more than half of the UK’s leading companies revealed there is expected to be a threefold increase in the number of companies offering shareholders a vote on boardroom remuneration.

The move, according to the Trade Union Congress, comes in response to government plans to introduce legislation next year making shareholder voting mandatory.

‘Directions: Corporate Governance Issues’ conducted by Edis-Bates Associate, secretarial consultants, found that 37% of FTSE 100 companies plan to offer a vote this year.

Massive payouts to financial directors were a highlight of the latest FD salary survey by sister publication Financial Director magazine, with five FTSE-100 FDs earning over £1m.

But in September last year, Trade and Industry secretary Patricia Hewitt hinted at government action to stop directors of failing companies getting big salary increases or huge payoffs.

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