COMMONS

Business Minister questioned on executive pay

22 January 2019

The BEIS Committee questions the Business Minister Kelly Tolhurst, the regulator (Financial Reporting Council), TUC and small shareholder representatives on executive pay and measures being taken to tackle excessive boardroom pay awards.

Chair's comment

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

"Unjustified corporate rewards erode public trust in business. Excessive executive rewards, at companies such as Unilever, Persimmon, and Royal Mail, are so out of kilter with the incomes of people working in the everyday economy as to threaten to undermine the foundations of our business culture and our society. Excessive rewards for a few means less investment in the business. Executive rewards should only flow when genuine long-term value is delivered for the company. In our evidence session on Tuesday, we want to explore the effectiveness of policies and actions at curbing excessive executive rewards, how companies should respond to shareholder concerns about pay packages, and what the Government is doing to ensure businesses deliver on fair pay."

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 2017.

Witnesses

Tuesday 22 January 2019, Committee Room 6, Palace of Westminster

At 10am

  • Paul George, Executive Director, Corporate Governance and Reporting, Financial Reporting Council
  • Janet Williamson, Senior Policy Officer, TUC,
  • Catherine Howarth, CEO, ShareAction

At 10.45am

  • Kelly Tolhurst, MP, Minister for Small Business, Consumers and Corporate Responsibility, Department for Business, Energy and Industrial Strategy
  • Sanu de Lima, Deputy Director, Corporate Governance Reform, Department for Business, Energy and Industrial Strategy

Further information

Image: iStockphoto

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