Cameron promises powers to limit executives' pay

**Hugh** · 08-01-2012, 17:32

BBC

Quote:

David Cameron has promised shareholders a binding vote on executive pay, in an effort to deal with excessive salaries.

The prime minister told the BBC there had been a "market failure", with some bosses getting huge rises despite firms not improving their performances.

He also pledged to tackle large payouts for executives dismissed because of poor performance.

About time this happened - there has been (mostly) no connection between success and reward; risk and reward were de-coupled, with the outcomes we have seen.

Here's the interview at source - Telegraph

chris9991 · 08-01-2012, 17:59

Why can't the Government stop interfering? The more it meddles in business the more likely they leave and the golden goose is lost. We should be encouraging business rather than load them with more red tape

**Hugh** · 08-01-2012, 18:16

It's not interfering with the running of the business, it is giving shareholders (who, in the end, own the business) more powers.

chris9991 · 08-01-2012, 18:22

Don't companies already have votes on executive pay?

beeman · 08-01-2012, 18:27

Quote:

Originally Posted by chris9991

Don't companies already have votes on executive pay?

no, typically its the board (ie the executives that decide pay levels). Shareholders just get to vote on whether to keep or replace the board.

08-01-2012, 18:29

I'd love to see how he's going to manage this one .I honestly don't see how he can manage to regulate executive pay and bonuses

Quote:

Shareholders would have to approve salary packages and, crucially, pay-offs, instead of simply having advisory votes as at present.

Executives tend to own shares so they aren't going to cut their own bonuses.That's like asking mp's to vote themselves a pay cut

chris9991 · 08-01-2012, 18:29

So if the executives are paying themselves too much - why don't the shareholders vote to get rid? After all they're the owners.

08-01-2012, 18:31

Quote:

Originally Posted by chris9991

So if the executives are paying themselves too much - why don't the shareholders vote to get rid? After all they're the owners.

because as i said above alot of executivesare shareholders ,quite often bonuses to executives come in the form of share options

**Hugh** · 08-01-2012, 18:33

Yes, but in the "big picture" of shareholdings, they only have a very small percentage - the pension and investment funds hold the majority.

chris9991 · 08-01-2012, 18:34

Sorry Martyh wasn't aimed at your post, was a reply to this comment

Quote:

Originally Posted by beeman

no, typically its the board (ie the executives that decide pay levels). Shareholders just get to vote on whether to keep or replace the board.

08-01-2012, 18:36

Quote:

Originally Posted by chris9991

Sorry Martyh wasn't aimed at your post, was a reply to this comment

It's ok we posted at the same time so i wasn't sure you got it

devilincarnate · 08-01-2012, 18:42

Quote:

David Cameron has promised shareholders a binding vote on executive pay, in an effort to deal with excessive salaries.

The prime minister told the BBC there had been a "market failure", with some bosses getting huge rises despite firms not improving their performances.

He also pledged to tackle large payouts for executives dismissed because of poor performance.

We are all share-holders in the government so will we all get a say in regards to this?

**Hugh** · 08-01-2012, 18:53

Yes - at the next election.

But, as I am sure you know, this is about company shareholders.....

devilincarnate · 08-01-2012, 18:56

Quote:

Originally Posted by Hugh

Yes - at the next election.

But, as I am sure you know, this is about company shareholders.....

We should be able to do it through the government and not just at the elections? We pay their wages and all their expenses, So we should all have a say?

08-01-2012, 18:57

Quote:

Originally Posted by devilincarnate

We should be able to do it through the government and not just at the elections? We pay their wages and all their expenses, So we should all have a say?

No we don't

private companies wages/bonuses are not controled by the government