David Evennett MP has backed wide-ranging changes proposed by the Business Secretary to the remuneration framework for Directors. The Government’s plans will:
• Give shareholders binding votes on pay policy and exit payments, so they can hold companies to account and prevent rewards for failure
• Boost transparency so that what people are paid is easily understood and the link between pay and performance is clearly drawn
• Ensure that reform has a lasting impact by empowering business and investors to maintain recent activism.
In response to the Business Secretary’s House of Commons statement, Mr Evennett said: “I welcome my right hon. Friend’s taking a reasonable approach on directors’ pay following consultation with business and investors. Does he believe that more power for shareholders and greater transparency will encourage more people to participate in companies’ meetings, get involved and buy company shares? That is surely what we all want—more shareholders and more involvement.”