23 January 2012
Policy Chairman comments on executive pay proposals
In response to plans on executive pay outlined by Business
Secretary Vince Cable in the Commons today (23 January 2012),
Stuart Fraser, Policy Chairman at the City of London Corporation,
said:
“Executive pay and other incentives are not just a City issue
but one for all sectors of the economy. This is an emotive subject
and there is understandably a political will to legislate. I
strongly believe, however, that the owners of businesses should be
entirely responsible for determining pay awards to managers and
other staff they employ.
“The Government has recognised this by outlining plans to give
new powers to shareholders of all companies that would enable them
to veto “excessive” boardroom pay at Britain’s top businesses. Of
course, shareholders already have considerable powers in this area
but we need to encourage them to engage in the scrutiny of this
process more actively.
“In a global marketplace, UK-based firms need to pay a
competitive rate in order to retain internationally mobile staff –
or equally crucially attract new, talented individuals. High pay
for success is perfectly acceptable, it is high pay for failure
that needs to be addressed.”
Ends
Notes to editors
Media contact
Sanjay Odedra
Senior Media Officer
020 7332 1835 / 07831 542 856
sanjay.odedra@cityoflondon.gov.uk