Companies: Remuneration

Lord Stevenson of Balmacara Excerpts

Wednesday 23rd March 2016 Lords Chamber

[The Earl of Courtown]

We all remember what happened at the general election in May. I, by the way, was in Kuala Lumpur at the time. I will not bore noble Lords with what I was doing there, but I do, of course, agree with my noble friend.

[Lord Stevenson of Balmacara (Lab)]

Let us get back to the Question. This raises important issues about transparency and equity. In 1980, to back up what my noble friend was saying, the median pay of directors of FTSE companies was £63,000 and the ratio to the average wage was 11:1. In 2013 that ratio had risen to 130:1 and median board pay is now £513,000. You have tried transparency, it does not work. What plans have the Government really got to regulate those who abuse their position by taking excessive pay and whose warped judgments prioritise short-term gains instead of long-term growth?

[The Earl of Courtown]

My Lords, regulation of pay throughout the banking sector, the high pay and the differences between all these subjects—I am sorry, I have lost track. Basically, it is important that there is equality in pay, and regulation of various sectors is so important in this area. I will write to the noble Lord. I apologise for that answer.