Pay Governance

Vince Cable, the UK Business Secretary, yesterday announced a number of measures aimed at curbing executive pay.

They include:-

·      Shareholders will be given a binding vote on a company’s pay policy and pay-outs to department executives;

·      Figures will need to be published in the form of a single number for each executive with explanations as to how they have been calculated;

·      Boards will need to explain how executive pay relates to dividends;

·      Measures will be taken to encourage the hiring of a broader range of non-executives;

·      Serving executives will be prevented from serving on other companies’ executive committees.

It will be interested to see how many of these measures actually see the real light of day.