Shareholders should be given a binding vote over how large British companies manage the payment of their executives and more companies may have to insert clawback clauses for highly-paid staff, Business Secretary Vince Cable said on Monday.
Firms should also need 75 percent of shareholders to agree to any pay proposals, Cable told parliament, announcing measures and proposals aimed at improving executive pay policy at Britain's biggest companies.
Shareholders need new powers to hold the board (of companies) to account and I will consult shortly on specific proposals to reform the current voting arrangements and give shareholders a binding vote, enabling them to exert more pressure on boards, Cable told parliament.
No proposal on its own is a magic bullet but together they can enable a major transformation to get underway.
(Reporting by Matt Falloon, Editing by Mohammed Abbas)