Government resists new directors’ pay rules

Link: DTI consults on fat cat pay row

Former Labour trade minister Lord Clinton Davis urged ministers in the upper chamber to act ‘immediately’ to ‘ensure that fund managers are held responsible for the decisions that they take on pay and corporate strategy’.

And Lord Razzall called in the same exchange for ‘a date by which the government will make up their mind whether the voluntary system works’.

But Trade Minister Lord Sainsbury said the mechanism giving shareholders of quoted companies a vote on directors’ remuneration needed time to work – pointing to the vote against it at GlaxoSmithKline and substantial opposition at Royal and Sun Alliance, HSBC, Reuters, BP, Shell and Boots.

Related reading