Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Investors to receive binding powers on pay

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 or register to comment. It is free to register and only takes a minute or two.
Your Business: Cover Star Club

Profile: How Arbuthnot Latham is future-proofing private banking

Profile: How Arbuthnot Latham is future-proofing private banking

Traditional does not have to mean sleepy and Arbuthnot Latham head of private banking Liz Bottomley has been quietly overseeing a restructure designed to ‘future-proof’ the business

Wealth Manager on Twitter