View more on these topics

Cable seeks to quash speculation on shareholder pay votes

Business Secretary Vince Cable has moved to quash speculation he plans to give shareholders a binding vote on executive pay once every three years instead of annually as originally proposed.

In March, the Department for Business Innovation and Skills published a consultation aimed at giving shareholders an annual binding vote on executive pay and golden goodbyes worth more than a year’s salary. It also suggested increasing the level of support required beyond a simple majority of over 50 per cent.

At the weekend it was reported Cable was inclined to scrap the proposal from plans set to be published in the coming weeks, giving shareholders a binding vote every three years instead.

The reform will be introduced in a Government amendment to the Enterprise and Regulatory Reform Bill.

In a Commons debate on the bill yesterday, Cable said: “Current thinking, we are yet to report back to the House formally on the consultation, is there will be annual votes if pay policy is changed by companies. The investor community made it absolutely clear that it sees that as a much more productive way of progressing its concerns.”

Shadow Business Secretary Chuka Umunna welcomed Cable’s comments adding that Labour backs proposals put forward by Fidelity Worldwide Investment calling for a majority of 75 per cent to be required for binding annual votes on future pay policy.

In May, Aviva Andrew Moss stood down after 54 per cent of shareholders voted against his remuneration package.

Recommended

3

Tony Wickenden: Will hardening HMRC hit estate planning?

You cannot have failed to have picked up on the strong climate of Government aggression to tax avoidance that is, in its eyes at least, “repugnant” or “unacceptable”. Over time, supported by the tribunal and court system on the one hand and strong publicity on the other, this expression and demonstration of official intent to […]

BBA warns ring-fence reforms will hit economy

British Bankers’ Association chief executive Angela Knight has warned bank reform plans set to be published tomorrow risk undermining the UK’s economic performance. The Treasury will publish a white paper on the Bank Reform Bill ahead of Chancellor George Osborne’s Mansion House speech tomorrow night. It will be based on the recommendations of the Independent […]

Succession takes on two new firms

Succession Advisory Services has taken on two new firms with around £100m assets under advice. Halsall-based Richard Bamber and Company has around £40m assets while Sheffield-based Facts Financial has around £60m. Succession chief executive Simon Chamberlain (pictured) says: “We have a proven comprehensive transition programme delivering efficiencies, scale and economies, optimising processes and systems to support […]

Government prepares to give HMRC powers to crack down on tax abuse

The Government has set out proposals for new powers to tackle “artificial and abusive” tax avoidance that would enable HM Revenue & Customs to require people to change their tax arrangements. The Treasury’s first consultation paper on the general anti-avoidance rule, which was announced in the March Budget and published this week, says the powers […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment