'Fat cat' law changes dismissed
The government looks set to back down on fat cat pay. Patricia Hewitt, trade secretary, will announce later this week that there will be no immediate changes to the laws that govern pay for the country's top bosses.
The decision comes after an eight-month consultation launched last summer in the wake of criticism of big pay rises for some chief executives.
Trade Unions had called for action and shareholders had also revolted – most notably in the case of GlaxoSmithkline’s chief executive, Jean-Pierre Garnier. He had a £22m pay package rejected last June by shareholders.
However, Hewitt will say the government will retain the option of changing company law if public companies do not show more restraint in future pay deals.