Oral Answers to Questions

Debate between Kelly Tolhurst and David Davis

Tuesday 22nd October 2019 Commons Chamber

[Kelly Tolhurst]

I thank the hon. Lady for the work she is doing on the Select Committee. Thomas Cook did have clawback and malus arrangements in place for the recovery of directors’ bonus payments in specific circumstances, as required by the UK corporate governance code. My right hon. Friend the Secretary of State has asked the Insolvency Service to fast-track an investigation, and it will report back. As the hon. Lady outlined, the CEO did advise the Committee on 15 October that he would consider voluntarily surrendering some of his 2017 cash bonus, but it must be pointed out that no bonus was paid to the ex-CEO in 2018.

[Mr David Davis (Haltemprice and Howden) (Con)]

The hon. Member for Leeds West (Rachel Reeves) highlighted the point that the biggest concern is not simply how much is paid to executives, but their being paid for failure, not for success. The current arrangements in British company law allow chief executives and other executives to be paid on the basis of share price and allow them to buy back shares, propping up the share price. This is a formula for payment for failure. Is the Department looking at that?

[Kelly Tolhurst]

I thank my right hon. Friend for raising this. Part of the reforms in January was to make organisations report back on the effect of share price growth on executive pay outcomes. We published some evidence before the summer from a review undertaken on share buy-backs, and there was no clear evidence to suggest that they did have a perverse outcome.

EU Exit Negotiations

Debate between Kelly Tolhurst and David Davis

Tuesday 17th October 2017 Commons Chamber

[Mr Davis]

First, the Under-Secretary of State for Exiting the European Union, my hon. Friend the Member for Worcester (Mr Walker), had a meeting with the industry this morning, and not for the first time. I have met industry representatives a couple of times as well. Secondly, part of the point of the implementation phase is that it gives them an extra two years of decision making, and that is well within their decision cycle. Thirdly, as for giving a blank cheque, that is Labour’s policy.

[Kelly Tolhurst (Rochester and Strood) (Con)]

I very much welcome the update that my right hon. Friend has given the House. As we leave the EU, the talented people and their businesses will drive our economy forward, whatever the outcome of the deal, because that is what we do in British business. Does my right hon. Friend agree that it is now time for the EU to move on with trade discussions and that British businesses that operate throughout Europe should be lobbying the Commission and the member states in which they operate so that the EU moves forward and we can start to see some clarity and certainty?

[Mr Davis]

I entirely agree with my hon. Friend, and, indeed, a number of British businesses are doing just that.