Directors’ Pay

Julian Smith Excerpts

Wednesday 20th June 2012 Commons Chamber

[Vince Cable]

I have identified that problem. It is particularly a problem in banks, where the so-called code staff, including traders, are sometimes paid more than their directors. That will be covered by the regulation on financial services, which is being strengthened in that respect. There are probably very few public listed companies outside the banking sector where the phenomenon the hon. Gentleman describes is real.

[Julian Smith (Skipton and Ripon) (Con)]

Will the Secretary of State talk a little more about the transparency proposals for paid consultants? Is it worth considering adding to that the fee structures and mechanics for executive search consultants in relation to board positions?

[Vince Cable]

I will happily give the hon. Gentleman more information on the detailed work done on the rules governing transparency in that sector. His point about executive search agencies is a new one—I had not encountered it before—and we will certainly consider it, but the principle of greater transparency is absolutely right.