Tuesday 20 Sep 2011 @ 09:50
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CBI RESPONDS TO LAUNCH OF GOVERNMENT CONSULTATION ON REMUNERATION BY VINCE CABLE

The CBI yesterday (Monday) commented on the announcement of a Government consultation on remuneration, by Vince Cable, Secretary of State for Business, in a speech to the Liberal Democrat Party conference.


John Cridland, CBI Director-General, said:

“It is crucial that executive pay is squarely linked to performance, and there are cases where this link needs to be clearer.

“People should be rewarded for good work, and payment for failure is unacceptable, but it must be recognised that the jobs market for senior company executives is one where talent competes globally.

“We need shareholders to be more involved with the companies they invest in, and they should hold the board to account when it’s necessary. However, it is not the role of shareholders to micro-manage companies day-to-day.

“We welcome this consultation, but executive pay must not become a political football, and overly simplistic measures like ratios will not address the problem.”


Notes to Editors:

The CBI is the UK's leading business organisation, speaking for some 240,000 businesses that together employ around a third of the private sector workforce. With offices across the UK as well as representation in Brussels, Washington, Beijing and Delhi, the CBI communicates the British business voice around the world.



Media Contact
CBI Press Office on 020 7395 8239 or out of hours pager on 07623 977 854. Follow the CBI on Twitter at: www.cbi.org.uk/twitter
 

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