The idea of introducing legislation into the code of corporate governance on this issue has apparently been rejected by the Department of Trade & Industry, according to the FT.
It follows pressure from investor groups over what they consider excessive pay to executives who run companies poorly.
Rather the government is said to be in favour of changes to the voluntary code on corporate governance and the use of a ‘get out’ clause in contracts.
The government is also in favour of investors using their voting on pay issues more effectively, which they believe will make introducing legislation unnecessary.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements