CBI to urge curbs on boardroom pay rises
Monday 13 March 1995
Legislation to curb excessive boardroom pay rises is expected to be recommended by the Confederation of British Industry's inquiry under Sir Richard Greenbury, according to business leaders travelling with John Major, the Prime Minister, on the high-powered trade delegation to Israel.
Sir Richard's committee is likely to require more disclosures by companies of the payments to boardroom executives, and the addition of non-executive members to the remuneration committees that determine pay for executives. The remuneration committees may also be required to have regard to the competitive performance of companies before agreeing to big boardroom pay rises.
The changes, which could come in amendments to the Companies Act, would be directed at all public companies, but the performance criteria, raised in the Commons by Mr Major, could inhibit privatised utilities from making big awards on the basis of profits from their monopoly position.
Sources said the business community was extremely irritated with the impression that all top company executives were "fat cats" because of the excesses of the utility bosses.
The Government has also been alarmed that public opinion has swung against the Thatcherite principle of rewarding success with high salaries in favour of a more egalitarian share of pay rises between bosses and workers.
Conservative Party leaders believe it would be very dangerous for the Government if that trend was not reversed.
And why are 'southern' ways of speaking spreading north?
life + styleClarissa Baldwin is the brains behind the slogan 'A Dog is for Life not just for Christmas'
Autumn Statement 2013: Work until you’re 70 - George Osborne accused of ‘living in fantasy land’ over pension reforms
Is this the scariest advert ever? Japanese tyre commercial comes with its own disclaimer and health warning
Paul Walker autopsy: Results reveal Fast and Furious star's cause of death
Scientists sequence oldest human DNA from fossilised leg bone found in Spain
UK weather: Two dead and 100,000 homes without power as 100mph storm batters Scotland – now biggest tidal surge in 60 years threatens east coast
- 1 Is this the scariest advert ever? Japanese tyre commercial comes with its own disclaimer and health warning
- 2 A forgotten episode in Russian history leaves links with the Philippines
- 3 Scientists sequence oldest human DNA from fossilised leg bone found in Spain
- 4 ‘Put it in my mouth’: Viewers outraged by apparent reference to oral sex in VIP e-cig advert
- 5 Joanna Lumley’s garden bridge over the Thames gets £30m seal of approval from Government
iJobs Money & Business
£75000 - £85000 per annum + Bonus and Benefits: Harrington Starr: An award win...
£90000 - £120000 per annum: Harrington Starr: Global Director of Infrastructur...
£50000 - £70000 per annum + Bonus + Benefits: Harrington Starr: Associate Dire...
£Negotiable: Citifocus: High calibre individual with a strong understanding o...