Jan 12 2012 By Lorely Burt
WE’VE seen in the news recently a lot of talk about control of ‘Executive Pay’; ie, putting stricter controls on the levels of pay top bosses can receive.
This is something my party has been strong on for a long time and, more recently, David Cameron has been talking about as well. But what do you think? I have no problem with any person, or company, making money. For me, this issue isn’t about punishing wealth creators. They are the ones who provide jobs and growth for the economy, and are vitally important.
What it is about, is giving company shareholders more power in deciding their executives’ pay levels. It is about the process being ‘transparent,’ so people at the bottom can see the reasons why people at the top deserve the money they get. In some cases, it may be appropriate for employees to sit on remuneration committees, so they have a voice in the negotiations that see millions of pounds going to their bosses. The fact is in many organisations, a huge disconnect exists between the level of an executives’ pay and the companies’ performance. We saw no clearer example of this than RBS Chief Executive Fred Goodwin who, in return for losing the company £24.1bn and forcing the Government to bail them out, received a £16m pension pot. That’s why I’m keen to see the Government take action to ensure fairness and transparency in executive pay levels, and I look forward to working on it in Parliament very soon.