LDVideo: Vince unveils changes on executive pay

by Stephen Tall on January 24, 2012

As we reported here on LibDemVoice yesterday, Lib Dem business secretary Vince Cable yesterday announced to the House of Commons a number of measures to curb excessive boardroom pay:


(Available on the BBC website here.)

Here’s how the BBC summarised the proposed measures:

  • making firms’ remuneration reports easier to understand, and requiring them to explain executive salaries in relation to the earnings of other employees
  • increasing transparency by requiring the publication of all directors’ salaries
  • giving shareholders a binding vote on executive pay, notice periods and exit packages – at present their say is merely advisory
  • encouraging a wider range of people onto company boards, including academics, lawyers, public servants and those who have never served on a board before
  • requiring all companies to introduce “clawback” policies, allowing them to recoup bonuses in cases where they are later shown to be unwarranted
  • * Stephen Tall is Co-Editor of Liberal Democrat Voice, and also writes at his own site, The Collected Stephen Tall.