Cable to water down vote on executive pay

Vince Cable, the Business Secretary, plans to water down his hardest-hitting measure to curb excessive executive pay.

Chief executives are likely to be spared an annual binding vote on their pay and bonuses, which had been proposed by Mr Cable in a paper on tackling boardroom greed. Instead, he is now planning on a vote every three years, because of fears that an annual vote would add huge amounts of bureaucracy.

Chuka Umunna, the shadow Business Secretary, said: "It is greatly disappointing that the Government is backing down on its proposal for annual binding votes on executive pay."

Mr Cable's move comes after a "shareholder spring" in which investors revolted against the pay of a slew of chief executives at companies such as Barclays and William Hill.