Wealth Manager - the site for professional investment managers

Register to get unlimited access to 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: John Brett's big plans for Anderson Strathern

Profile: John Brett's big plans for Anderson Strathern

After a high flying role at Aberdeen, Anderson Strathern's new boss explains why he switched product distribution for private clients

Wealth Manager on Twitter