Financial Services: Shareholder Engagement

Lord Davies of Oldham Excerpts

Wednesday 19th January 2011 Lords Chamber

[Lord Sassoon]

I am grateful to my noble friend for reminding us of the importance of audit, particularly in relation to banks. It enables me to remind us all that the Economic Affairs Committee of your Lordships’ House will, I hope, play an important part in the broader ongoing debate about stewardship when it comes up with its current report into the role of auditors.

[Lord Davies of Oldham]

When thousands of our fellow citizens are losing their jobs and millions are subject to a pay freeze and the bosses of industry are rewarding themselves very high increases indeed, is it not time that institutional and all shareholders had votes on the remuneration of executives and that the votes should be binding?

[Lord Sassoon]

My Lords, these are important issues and they are precisely why my right honourable friend the Business Secretary has a current consultation out to look at the question of shareholder engagement in relation to the effective running of the capital markets.