CBC.ca is reporting that Business Secretary Vince Cable said Wednesday that “the British government will propose legislation to give company shareholders a binding vote on CEO and executive pay and severance packages.” The proposals come in the wake of criticism of executive compensation, particularly at banks, and revolts by some shareholders against the high pay of company leaders. Cable stated, “There is compelling evidence of a disconnect between pay and performance in large U.K.-listed companies. It is right that the government acts to address this clear market failure.” Currently, British shareholders have only an advisory vote on remuneration.
CEO pay to be shareholder-controlled in U.K.
The British government plans to propose legislation giving shareholders binding say-on-pay votes.
June 21, 2012