Shareholders want limits on executive payouts
Major UK shareholder groups have called for curbs on 'extravagant' payouts to failed company executives.
The Association of British Insurers and the National Association of Pension Funds, whose members together own over half of the shares traded on the London Stock Exchange, have issued guidelines aimed at limiting the payments given to executives that have failed in their roles.
The move follows angry investor reaction to such rewards given to executives at companies such as Marconi, BT Group and Royal & Sun Alliance.
Both the ABI and NAPF said that their members will try to enforce the new guidelines when all remuneration policy changes come up for vote in the new year.