Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a589463

Investors to receive binding powers on pay

by David Campbell on May 16, 2012 at 08:11

Investors to receive binding powers on pay

Investors are to be given a binding vote on executive pay and bank bonuses under plans being drawn up by senior European officials seeking to build on recent momentum behind shareholder activism.

In an interview with the Financial Times, EU commissioner Michael Barnier said investors should have the voting powers to curb ‘morally indefensible’ executive pay growth.

His comments follow a wave of shareholder rebellions against pay policies and performance at Barclays, Citigroup, AvivaAstraZeneca and Trinity Mirror.

‘I like that expression – the shareholder spring – or even a regulation spring, a rule-making spring,’ said Barnier, EU commissioner responsible for internal markets.

‘I’m very attentive to this movement which I see as very positive. It corresponds with what I have been doing for the last two years. We need to put responsibility and transparency everywhere.’

Barnier said he would support defined maximum bonus to salary ratio, as well as maximum ratio of pay between the top and bottom earners within a company.

He did not refer to a minimum threshold for shareholder support to pass the measures however. The proposals correspond to policies suggested by UK business secretary Vince Cable.    

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Sponsored Video: Barings on investing in Frontier Markets


From Nigeria to Pakistan and from Kenya to Kuwait, frontier markets are catching investors' attention as never before.

More about this:

Look up the shares

  • Barclays PLC
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Aviva PLC
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • AstraZeneca PLC
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Trinity Mirror PLC
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet