View more on these topics

Cable wants shareholders to get the final say on pay

The Government has proposed giving shareholders a binding vote on executive pay.

A consultation from the Department for Business Innovation and Skills on corporate governance, published last week, puts forward the idea of shareholders having an annual binding vote on executive pay and golden goodbyes worth more than a year’s salary. It also suggests increasing the level of support req-uired for pay packages beyond a simple majority of over 50 per cent.

Business Secretary Vince Cable says: “I have no problem with business celebrating success and rewarding talent, but I have heard frustration from all circles that directors’ pay goes up when times are good, and yet it still goes up when performance is poor. I want shareholders to feel empowered to prevent rewards for mediocrity or failure.”

BIS says the proposals would see companies reporting annually on how they have res-ponded to shareholder concerns and taken previous votes into account.

It says the changes would promote engagement between companies and those who invest in them and create a stronger link between pay and performance.

Cable says: “Good corporate governance is vital to creating the right environment for long-term, sustainable growth. Shareholders are at the heart of the UK corporate governance framework, so it is appropriate that we put more information and power in their hands.”



Govt and FSA dismiss RDR small pot concerns

The Government and the FSA have dismissed concerns about the impact the retail distribution review will have on people with small pension pots. Earlier this month, cross-party politicians and industry leaders signed a joint letter from the International Longevity Centre calling on ministers and the regulator to address the risk a post-RDR advice gap could […]

Out of context

“I did quite well at the start but for some reason the more I drank the less I won.” AWD Chase de Vere’s Patrick Connolly’s luck was out at this year’s Cheltenham festival. “I do not want to be fiddled with.” Forty Two Wealth Management chief executive Alan Dick on what he wanted from Osborne’s […]

Budget 12: Personal allowance up to £10k by 2014

The tax-free personal allowance will rise to £10,000 by April 2014, a year earlier than previously planned. The Coalition Agreement commits the Government to raise the allowance to £10,000 by the end of the Parliament, in 2015. According to the BBC,Chancellor George Osborne will announce in ths afternoon’s Budget that pledge will be delivered in […]

Govt to back £20bn of SME lending by banks

The Government has launched a scheme to guarantee up to £20bn of bank lending to small and medium sized businesses in exchange for firms getting a 1 per cent discount on those loans. Announced in the Autumn Statement, The National Loan Guarantee Scheme does not guarantee individual loans so banks retain the credit risk, though […]

Reforming India: just the beginning

By Kunal Desai, Neptune India Fund

As global investors continue to scour emerging markets through the lens of reform potential, India shines bright. Indeed, we think it can sparkle even brighter. We anticipate India’s self-imposed 10-year ‘policy holiday’ to turn into one of the most pro-growth and pro-investment policy calendars seen in Asia in years. The Indian electorate has engineered a historic verdict. We now have the strongest Indian government since 1984, with the pro-market Bharatiya Janata Party (BJP) achieving an absolute majority for the first time in the party’s history.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm