Directors’ Pay

Debate between Baroness Wilcox and Lord Tomlinson

Wednesday 20th June 2012 Lords Chamber

[Baroness Wilcox]

In answer to my noble friend’s first question, company law captures only UK companies. However, overseas companies must comply with the listing rules. We will work with the FSA to consider how the listing rules need to change in view of these reforms. I hope that is a helpful answer. In answer to his second question, companies will be able to make exit payments only within the envelope that shareholders have approved and it will be up to the shareholders to agree.

I cannot imagine that my Secretary of State was ever called a crypto-socialist by anybody—was he? I know that business very much welcomes what we are doing at the moment. Shareholders and business welcome it, and it is with them that we have been talking and negotiating to make sure that we can put this into the Bill that is coming up and that we can introduce secondary legislation so that we can get this moving as soon as possible. Everybody seems to agree that things must change.

[Lord Tomlinson]

My Lords, did the Minister hear the discussion on Radio 4 this morning in which one company chief executive reminded us of the fuss there was 10 years ago when the salary of the chief executive of British Gas reached £460,000? Is she surprised that, 10 years later, when FTSE chief executives have an average salary of 10 times that amount, this Statement smacks somewhat of closing the door after the horse has bolted? It is not sufficient just to deal with the present problem because the proposals that are being made build in the inequity that exists at the present time.

When the Minister talks about pay, precisely what is she talking about? Is she talking about total emoluments, of all sorts—pay, share options, shares, accommodation provided; the whole gamut, everything included—and will that be made absolutely transparent? Can she give us that assurance at least to make sure that there is no progress on the inequity?

[Baroness Wilcox]

I am very happy to reassure the noble Lord that we mean pay—all of it—and that is why we said in the Statement that there would be one figure. One figure means you do not have to work your way through myriad figures and arrangements, et cetera, so that it will be clear to everybody exactly what that person is getting.

I did hear the interview this morning. It was with two businessmen; one from a FTSE 100 company and the other one from a company that was never listed on the Stock Exchange. If you talk about closing the door, in the short time that we have been in government, we have now opened the door—a door that we feel should have been opened a lot longer ago, but we were not in government then.

Competition Commission and Office of Fair Trading

Debate between Baroness Wilcox and Lord Tomlinson

Monday 22nd November 2010 Lords Chamber

[Baroness Wilcox]

My noble friend sounds like a man who is scarred by many consultations. I, too, have taken part in consultations and have sometimes wondered at the end of them, “What a lot of talking”, but this is the country we have, and we consult. We hope to be fast and furious and to get everybody’s opinion in.

[Lord Tomlinson]

If the noble Baroness holds consultation in such relative contempt, does she not find some sort of embarrassment in trying to give us the Answer to the Question before there has been the analysis to provide a proper Answer? Does she not find some sense of embarrassment in that?

[Baroness Wilcox]

I do not think that is what I said. I said I think that we take part in consultation. This is a democracy. Sometimes it may be irksome, but it is very important that all opinions are heard, even the noble Lord’s.

Small Businesses: Invoice Payments

Debate between Baroness Wilcox and Lord Tomlinson

Tuesday 26th October 2010 Lords Chamber

[Baroness Wilcox]

Ensuring that banks keep things flowing for business is a long-standing issue. It is very important to ensure that the banks do everything they can in that regard, and for us to ensure that we provide the freedom and flexibility to enable businesses in this country to maintain the business flow which is badly needed right now.

[Lord Tomlinson]

Bearing in mind the earlier Question answered by the noble Lord, Lord Sassoon, does the noble Baroness think that it represents value for money to have Sir Philip Green produce a report for Government of which Government do not seem to be aware?

[Baroness Wilcox]

I do not really think I ought to answer questions that were directed at my noble friend.