Member Article

Public urged to give their ‘Say on Pay’

A new campaign has been launched to give the public a say on how companies’ executive pay packages are managed.

In the wake of public anger over Bob Diamond’s pay award at the Barclays AGM, shareholder activism group FairPensions is calling on the public to offer their ‘say on pay’. Individuals are being urged to email their pension fund or ISA provider, urging them to vote down excessive pay providers.

As these groups hold significant stakes in Britain’s leading companies, it is hoped that the project will provide a unique way to influence pay practices.

Sir Mike Darrington, former managing director of Greggs has already offered his support to the scheme.

He commented: “It’s high time that we get a handle on excessive executive pay. For too long now many of those at the top of Britain’s biggest companies have continued to reap enormous rewards while profits and share prices fail to impress.

“I’m very pleased to support FairPensions’ project to give people a say on pay. I urge anyone who cares about excess at the top to take the online action.”

The High Pay Centre have also backed the project which challenges the failure by international investors to end ever-increasing pay awards at FTSE 100 companies.

Since 2002 only 18 remuneration proposals have been rejected out of the thousands put to the vote, and CEO of FairPensions Catherine Howarth now expects public action to put much-needed pressure on investors.

She said: “Until now scrutiny of high paying companies has been left to big investors who have
shown themselves reluctant to take a strong stance on spiralling pay awards.

“Now the public has a chance to influence this debate and have to their say on pay.”

With the government seeking a ‘shareholder solution’ to the executive pay problem, the role that pension funds and other investors play in scrutinising executive remuneration is hugely significant.

Currently investors are under no legal obligation to disclose how they vote on executive pay. FairPensions expects the project to highlight the lack of transparency from asset managers on how they vote at company AGMs.

Ms Howarth added Catherine Howarth said: “This campaign isn’t only about challenging spiralling bonuses.

“It demands that the investment community become more accountable to the people whose money they manage. Savers deserve to know how their pension and ISA providers vote on issues that matter to them.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .