Employment: Remuneration

Debate between Earl of Erroll and Baroness Neville-Rolfe

Thursday 8th September 2016 Lords Chamber

[Baroness Neville-Rolfe]

I thank my noble friend for his interesting and provocative remark.

[The Earl of Erroll (CB)]

Is there not also a deeper problem, which is that many of these remuneration packages of senior executives are geared towards profit targets in various ways? The quickest and easiest way of doing this is to axe the visionary research and development programmes in order to increase the bottom line temporarily to get their rewards. As a result, some of our larger companies are suffering from, I would say, a lack of vision, expansion and innovation.