Enterprise and Regulatory Reform Bill

Lord Wills Excerpts

Monday 11th March 2013 Lords Chamber

It is harder than it was in the past for shareholders to organise effectively, but when a significant minority of them do, it is still possible for a company to ignore them. This amendment would remedy that, and I hope that the Government will consider it carefully. I beg to move.

[Lord Wills]

I am very grateful for that, but I just hoped that before my noble friend sat down he could address one particular issue that is of concern to me. He has put forward a compelling case for these amendments, and I hope that the Government will consider them extremely carefully. In his closing remarks he put his finger on one of the main problems with this whole area; it is not just that shareholders find it difficult to hold companies to account for their remuneration policies but that those shareholders are for the most part, as he has identified, large financial institutions. They are not as accountable as they perhaps should be to those whose savings they manage. Has my noble friend given any thought to making those institutions give an account of their policies on remuneration to those whose savings they manage, and why they have taken a particular stance on a company’s remuneration policy—to making those institutions more accountable—which might make them even more activist than they already are?

[Lord Mitchell]

I thank my noble friend for that comment. I think it is a really good idea. They should be accountable. They manage so much money, and I think it is a very important factor.