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Executive pay deals should not be politicized, say IoD

The Director General of the Institute of Directors has responded to Vince Cable’s speech at the Liberal Democrat Party Conference.

Miles Templeman welcomed changes to the planning regime but called on the Business Secretary to use his position to promote competition in UK business, rather than dwelling on executive pay.

This afternoon Vince Cable expressed his concerns over the way executives are paid, and proposed that shareholders receive a bigger say on pay deals.

Mr Templeman commented: “We agree that it is right that the pay of business leaders is aligned to business performance, and there may well be some practical improvements that can be made to the pay levels are set in big companies.

“However, it is important that ministers do not politicise a subject that is best approached in a cool, dispassionate way.”

The government have now opened a review into the issues surrounding executive remuneration, and will put forward new wide-ranging proposals on how to link executive pay more closely to company performance.

The Business Secretary commented: “Executive remuneration that is well structured, linked to the objectives of the company and rewards directors who contribute to the long term success of the company is an important way of promoting sustainability and growth.

“We have put a wide range of opinions up for discussion so we can decide what is workable and end up in a place where remuneration is genuinely matched to performance and long term success.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .