Despite pressure from unions for legislation on this matter, Jacqui Smith, DTI minister, said the problem was not going to be solved by legislation.
Rather the government is planning on introducing new rules to help shareholders put pressure on company boards, rather than cap the payments itself.
This follows the Confederation of British Industry urging business leaders to disclose the contractual terms of their agreements with new executives as part of its efforts to curb rewards for failure and rebuild the tattered reputation of UK plc.
At the same time, the FT reported that legislation limiting the liability of the Big Four is unlikely to be introduced in the autumn.
Firms will have to wait till 2005 at the earliest, when the main company law reform bill is due to be published.
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