24 Jan 2012

Curbs on executive pay proposed

6:16 am on 24 January 2012

UK Business Secretary Vince Cable has unveiled plans designed to curb executive pay.

In a speech to MPs, Mr Cable said shareholders would be given more powers to block excessive pay packages and companies would be encouraged to increase diversity on their boards.

Firms will also have to justify high salaries in their remuneration reports.

Labour says the proposals do not go far enough, arguing workers should be given a position on remuneration boards.

Prime Minister David Cameron has said he is not opposed to large salaries and bonuses for successful executives, but wants to get rid of what he has called rewards for failure.