Executive pay to be curbed

The pay and bonus structure of top executives seem to be structured to reward no matter what the circumstances and Vince Cable plans to give shareholders the power to do something about it.

Vince Cable unveiled a number of proposals in the House of Commons yesterday, designed where possible to align executive remuneration to company performance, with no reward for companies that fail, or produce sub standard figures and much higher visibility as to the reward structures at top level.

Exit packages where a top CEO, MD or FD can step down after running a company into the ground and then draw a fat pension for the rest of his life are also included in Cable's plans.

The mechanism for implementing them is through having a more diversified board that will include a remuneration committee that ultimately reports to the shareholders.