Time to give shareholders real power over directors’ rewards?
As yet another shareholders meeting registers disapproval of executive pay, this time at easyJet, the question arises as to whether now is the time to hand some greater control over directors remuneration to shareholders.
The current climate is one that is intolerant of any suggestion of fat cattery. The focus has also shifted to the public sector and the pay of the chief executives of councils and other public bodies.
What this means is that there may be some political capital to be made out of a scheme that shifts some genuine power back to shareholders to cap excessive salaries (as opposed to the largely symbolic power that is currently possessed).
Drafting some legislation that actually achieved this without affecting the delicate balance between the interests of the company, its executives and its owners that has been developed over the years - now that is a challenge!
Tags: shareholder rights, shareholders rights
shareholders rights | Ed Weeks | 
February 19, 2010 8:00 pm
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