Government has ruled out new laws to prevent excessive executive pay – for the
and industry secretary Patricia Hewitt announced that the Government will allow
regulations requiring companies to submit remuneration reports to shareholders
"time to bed in" before making a final decision.
DTI will now wait to decide whether or not the law needs to be changed to
prevent excessive boardroom pay and rewards for failure.
Hewitt has refused to rule out such
legislation completely, declaring that: "We will be watching events in
this year’s AGM season closely. If further action is needed to strengthen the
hand of shareholders, we will take it."