Government proposals to submit


executive pay policy to shareholder vote have implications for HR, says NEIL HODGE. Should it all be left to the remuneration committee, or should it be seen


as an opportunity to add value to the wider business?


cCable’soils T


he Government’s attempt to push shareholders to at least question – rather than curb – spiralling executive pay has gathered momentum, after business secretary Vince Cable MP published draft regulations that will force companies to reveal how bosses’ remuneration is calculated,


and


shareholders to actively back it. On 27 June, Cable announced his package of reforms to


improve transparency and accountability in directors’ remuneration. The key measure is a binding vote on pay policy, which requires the majority support of shareholders


16 HR Supplement September 2012


at the AGM is not the most positive of goals to be driven by or judged upon


remuneration report approved by shareholders


Having a David Ellis/KPMG hrmagazine.co.uk


Fernando Volken Togni


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