Directors’ Pay
Debate between David Winnick and Vince Cable(12 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text
Vince Cable
The hon. Gentleman is absolutely right. The big issue is essentially a cultural question—the evolution of business in the UK over a long period is central. That is why I set up the review under Professor Kay, which was supported by Sir John Rose and others. That will report in July. Some of its proposals—on, for instance, an end to quarterly reporting—will emerge in detail shortly.
Mr David Winnick (Walsall North) (Lab)
While millions of people are trying to make ends meet—far more than under the previous Government—why should we believe that the massive annual sums, amounting to millions of pounds, given to the heads of the banks and other organisations are likely to change? We are in an unfair society, and there is no indication that that will change in any way as a result of what the Secretary of State has told us.
Vince Cable
The proposal is not designed to solve all the problems of income and wealth distribution in society; it is designed to ensure that public listed companies operate responsibly, and that they are properly policed by their shareholders. The wider questions the hon. Gentleman raises involve tax and other policies, which I am sure we will debate on many other occasions.
Executive Pay
Debate between David Winnick and Vince Cable(12 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
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Vince Cable
Yes, the theme of what I have been saying today has been the link between pay and performance, and as my hon. Friend knows, there are specific problems in the banking sector, not least because until the Vickers report is implemented we still have a “too big to fail” problem and an implicit Government guarantee. That is why rather stricter provisions have to apply in the sector.
Mr David Winnick (Walsall North) (Lab)
Does the Secretary of State really want us to believe that those who get vast salaries, bonuses and share options and probably earn well over £1 million a year are now terrified as a result of what he has said today? The truth is, that it does not really amount to much, does it?
Vince Cable
I do not expect them to be terrified, but I do expect them to think a little more carefully about their wider responsibilities.