Corporate Governance

Lord Puttnam Excerpts

Tuesday 29th November 2016 Lords Chamber

[Lord Henley]

I take it that my noble friend is referring to the problem relating to payments made by big companies to their suppliers down the line. He is right to draw attention to this issue and it is certainly something that I would want to pass on to my right honourable friend because, as he says, it can be a cause of major concern for those in the supply chain if they are not being paid in good time. As I say, I will pass that on.

[Lord Puttnam (Lab)]

My Lords, the Minister said that the Government were looking for suggestions. As someone who has been the chair of the remuneration committee of a number of public companies, let me say that it is a very lonely place to be. A great deal could be done by the Government to align more clearly and unambiguously the responsibilities of the remuneration committee with the interests of shareholders. It may look simple—but, believe me, if you are in the hot seat trying to deal with these situations, it can be very difficult indeed. It would be very helpful to be able to rely on statute so that the pressures that need to be brought to bear could be brought to bear.

[Lord Henley]

I think that the noble Lord has it absolutely right when he says that being the chair of the remuneration committee can be a lonely place to be. That is something which all those in business, and the rest of the board, ought to take into account when listening to the chair of that committee.