Public anger over high levels of executive pay has provoked new government proposals in Britain for binding shareholder votes on remuneration committee reports. This will mark a revolution in corporate governance as shareholders would vote both on the past year’s awards and on the coming year’s plans for salary increases, bonuses and long-term share awards. Boards will find it difficult to deal with such intervention in complex pay structures. A ‘no’ vote is a blunt instrument which will not provide a clear steer on where to go next. Read more
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