Enterprise and Regulatory Reform Bill proposes to give shareholders binding votes on directors’ pay
Business Secretary, Vince Cable today presented the Enterprise and Regulatory Reform Bill to Parliament including measures to give shareholders binding votes on directors’ pay.
Subject to the will of Parliament, the Bill will deliver legislation aimed at “encouraging long-term growth” by:
“Addressing the disconnect between directors’ pay and long-term company performance by giving shareholders of UK quoted companies binding votes on directors’ remuneration. This will encourage shareholders to be more engaged and companies to listen to what they say.”
The Bill now begins its passage through both Houses of Parliament.
The government recently consulted on proposals to give shareholders binding votes on directors’ pay. Following consideration of the consultation responses, the government aims to bring forward further detail on how this will work later in the legislative process.
A final word
“Growing our economy out of a period of acute crisis is the most pressing issue for this Government. We want to make sure the right conditions are in place to encourage investment and exports, boost enterprise, support green growth and build a responsible business culture.
“The measures in the Enterprise and Regulatory Reform Bill will help make Britain one of the most enterprise-friendly countries in the world. It will improve our employment tribunals, reform and strengthen competition enforcement, scrap unnecessary red tape and help ensure that people who work hard and do the right thing are rewarded.” - Vince Cable, Business Secretary.
Want to know more?
The Enterprise and Regulatory Reform Bill can be accessed at http://services.parliament.uk/bills/#e.
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