Margot James backs Government plans on executive pay
23rd January 2012
Margot James backs Government plans for greater transparency and more shareholder powers over executive pay so that companies can judge for themselves the best course of action. She points out that in some cases holding on to an executive - through the incentive of high pay - during a difficult trading time might be the best course of action.
Margot James (Stourbridge) (Con): Incentives and rewards are fundamental to the private sector growth that we are all keen to ensure. Does my right hon. Friend accept that it is sometimes hard to distinguish between performance and failure, and that certain companies facing extremely difficult trading conditions might have to hang on to an executive through the incentive of high pay?
Vince Cable: Yes, and that is why operational decisions must remain with the company so that it can make a judgment on the matter. Through these recommendations we are trying to ensure that investors are properly informed, and we are, through transparency, giving them the power to make the judgment that the hon. Lady described, and act accordingly.
