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Corporate Governance Debate
Full Debate: Read Full DebatePhilip Boswell
Main Page: Philip Boswell (Scottish National Party - Coatbridge, Chryston and Bellshill)Department Debates - View all Philip Boswell's debates with the Department for Business, Energy and Industrial Strategy
(7 years, 9 months ago)
Commons ChamberI completely agree with my hon. Friend. The times when we had very high levels of shareholder participation were ones when there was an enhanced understanding of the importance and role of business. I will take his recommendation seriously and take it forward.
I urge the Minister to consider that corporate governance leans too much in support of shareholders and dividend, and the protection thereof. The focus of any good corporate governance initiative should be: supporting workers’ rights; driving towards a fairer pay distribution, an issue much covered by colleagues here, and away from inflated corporate management remuneration; and the reinvesting of any funding in research and development, and good protective governance for employees and management, as well as job creation and job security.
When the hon. Gentleman reads the Green Paper, I think he will welcome our proposals, which address some of the points he is making to ensure that the pay of the top management is aligned with the long-term success of the company, and to require a greater connection between the workforce and the management, as well as customers and other groups. That is a step in the right direction, and as my colleagues have pointed out, business has warmly welcomed it. This is a timely and useful upgrade in the standard of corporate governance in this country.