Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Latest NewsExecutive payPay & benefits

Shareholders to be given ‘binding votes’ on executive pay

by Laura Chamberlain 20 Jun 2012
by Laura Chamberlain 20 Jun 2012

The Government has announced that it will give shareholders “binding votes” on executive pay and exit payments, in “the most comprehensive set of reforms” of the framework for directors pay in a decade.

Under the reforms, companies will require the support of the majority of shareholders in order to implement their pay plans for directors, and these will be subject to binding shareholder votes annually, or every three years if the policy remains unchanged.

Once the pay policy has been approved by shareholders, companies will not be able to make payments to executives outside of its scope. Policies setting out the employers’ approach to exit payments for directors will also be subject to a binding shareholder vote.

In addition, the reforms will include measures to boost the transparency of executive pay, such as the requirement for businesses to include better information in their pay policies on how directors’ pay compares to the wider workforce.

Business secretary Vince Cable commented: “At a time when the global economy remains fragile, it is neither sustainable nor justifiable to see directors’ pay rising at 10% a year, while the performance of listed companies lags behind and many employees are having their pay cut or frozen.”

However, John Longworth, director general of the British Chambers of Commerce (BCC), warned that executive pay is a matter for business, not politicians.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

“Over the years, corporate governance in this area has sometimes failed, prompting the need for action to ensure shareholders’ interests are safeguarded,” Longworth explained. “If binding votes every three years deliver improved levels of shareholder accountability, we have no objections.

“But Government intervention should stop there. Setting levels of executive pay is a matter for companies, their boards, and their shareholders, not politicians. At such a crucial time for the UK economy, ministers’ focus should move swiftly on to the core issues – creating jobs and growth. The creation of a business bank for new and growing companies, and a radical increase in infrastructure investment, are far more pressing issues than executive pay.”

Laura Chamberlain

previous post
Public-sector employers struggling to recruit as cuts take hold
next post
Government publishes details of protected conversations proposals

You may also like

Government publishes ‘roadmap’ for Employment Rights Bill

1 Jul 2025

Ethnicity and disability pay gaps: Ready to report?...

1 Jul 2025

Government moves swiftly on immigration reform

1 Jul 2025

One in eight senior NHS managers from black...

1 Jul 2025

Government launches ‘landmark’ review of parental leave

1 Jul 2025

Clarks cuts 1,200 jobs after ‘year of transition’

1 Jul 2025

How HR can support families with adoption

1 Jul 2025

Co-op equal pay claims move onto next stage

30 Jun 2025

‘Be direct’ to avoid escalating conflict, advises Acas

30 Jun 2025

Reforming paternity leave could benefit UK by £13bn...

30 Jun 2025

  • Empowering working parents and productivity during the summer holidays SPONSORED | Businesses play a...Read more
  • AI is here. Your workforce should be ready. SPONSORED | From content creation...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+