Tory's Bill to curb 'fat cats' is defeated

An attempt to outlaw huge pay-offs for failed company directors was scuppered yes-terday when Labour MPs killed off a Private Member's Bill to curb the practice.

Archie Norman's proposed legislation, which would have restricted a firm's right to pay so-called golden handshakes, will run out of parliamentary time after Labour backbenchers called for the Commons to sit in private.

Mr Norman, the Tory MP for Tunbridge Wells and a former boss of Asda, protested over the tactics and blamed ministers for orchestrating the move. "Is it in order for Labour MPs to use a parliamentary device to kill a Bill of this kind, which has wide-spread support on all sides of the House?" he asked.

Mr Norman's Bill would require boards to take a director's performance into account when setting comp- ensation levels and disclose the level of pay-off to shareholders on request.

Patricia Hewitt, the Trade and Industry Secretary, has pledged to look at new ways to prevent big pay-offs. She is reported to believe that Mr Norman's Bill would lead to lengthy courtroom battles.