Companies: Executive Remuneration

Lord Smith of Clifton Excerpts

Wednesday 13th June 2012 Lords Chamber

[Lord De Mauley]

My Lords, we will require companies to give more information about pay. We are not in favour of mandating companies to adopt a standardised set of ratios because they are not always the best measure to compare across companies. Different types of companies have different ratios because of the nature of their businesses. We also know from the United States that it is not helpful to work out the appropriate pay ratio for a UK-listed company whose business is conducted largely overseas. But I hear what the noble Lord says.

[Lord Smith of Clifton]

My Lords, if the chief executives of corporations do not get it, will the Government consider imposing martial law on the City?

[Lord De Mauley]

I wish I could think of a quick answer to that, my Lords.