CBI backs Government proposals for boardroom pay

The CBI has given a cautious welcome
to the Government’s plans to give shareholders an input into boardroom pay
levels.

Digby Jones, the CBI’s director
general, said, "Failure should not be rewarded nor be seen to be rewarded.

“It is right that business leaders
should show shareholders they are earning their rewards, which are often much
deserved. More transparency can only help.”

But Jones warned that any attempt to
allow shareholders to publicly mark the scorecards of individual directors
would be counterproductive.

"It is
in everybody’s interest to attract the best management in the world to work in
Britain. What is proposed is useful but must be at the end of the issue and not
a starter for ten," he said.

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