COMMONS

Measures being taken to tackle excessive boardroom pay awards examined

31 May 2018

The Business, Energy and Industrial Strategy Committee publishes written evidence submissions from firms and organisations including PwC, CIPD, IoD and the High Pay Centre.

Issues raised in the written evidence include those relating to Long Term Incentive Plans (LTIPs) and the approach taken to executive pay by shareholders. Submissions are available to view here [click ‘view all’] with a list and links to all 15 submissions also in the attached document.

Major investors questioned on executive pay

On Wednesday 6 June, the BEIS Committee is to question companies and major investors on executive pay and measures being taken to tackle excessive boardroom pay awards. 

The session is part of the inquiry ‘Corporate Governance – Delivering on fair pay’, which is examining progress in simplifying the structure of executive pay and reporting and the role of remuneration committees, investors and shareholders in curbing excessive pay. It is also examining steps being taken by the Government, particularly the progress made following a previous BEIS Committee report published in April last year.

Chair's comments

Rachel Reeves MP, Chair of the Business, Energy and Industrial Strategy Committee, said:

"Excessive executive pay undermines public trust in business and we have seen how some shareholders have rightly started to take a stand against pay awards that don’t reflect performance. During our session on Wednesday, we will be exploring what companies are doing to curb bumper pay awards and how investors are holding boards to account when they fail to do so. The Prime Minister has made great play of cracking down on boardroom excesses and her words must translate in to actions if businesses don’t face up to their responsibilities of ensuring fairness on pay."

Witnesses

Wednesday 6 June 2018, Grimond Room

At 10am

  • Marion Sears, Chair of Remuneration Committee, Persimmon
  • Clare Chapman, Chair of Remuneration Committee, Weir Group
  • Charles Cotton, Senior Performance and Reward Advisor, Chartered Institute for Personnel Development

At approximately 10.45am

  • Andrew Ninian, Director, Corporate Governance and Engagement, Investment Association
  • Robert Hodgkinson, Executive Director, Technical, ICAEW
  • Sarah Wilson, Chief Executive, Minerva Analytics Ltd
  • Euan Sterling, Global Head of Stewardship and ESG Investing, Aberdeen Standard Investments

Further information

Image: iStockphoto

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