Companies: Executive Remuneration

Lord Renton of Mount Harry Excerpts

Wednesday 9th November 2011 Lords Chamber

[Baroness Wilcox]

Concern over this is coming not just from Government but from investors, business groups and captains of industry, who have all told us that this is a problem that needs to be addressed. Business should be a force for good but, understandably, figures showing soaring executive pay are causing resentment towards large companies. We want to see transparency, proper accountability to shareholders and a sense of responsibility from British boardrooms.

[Lord Renton of Mount Harry]

My Lords, would the Minister consider supporting a Bill that would require the chairmen of publicly quoted companies to announce to shareholders regularly, at their annual general meetings, the average wage of the 10 best paid employees, including directors, and the 10 least paid? Might that not bring back some sense of reality?

[Baroness Wilcox]

My Lords, these sorts of suggestions are exactly why the Government have published this discussion paper. By the end of this month, we hope that we will have received all sorts of ideas so that we can come up with some really good suggestions to make for a better balance going forward.