Government promises action on greater board diversity
A renewed drive to get more people from different professional backgrounds onto company boards was announced by Business Secretary Vince Cable today as part of a strategy to tackle executive pay.
The focus on greater board diversity will see the Government looking at reducing the number of current executive directors serving on other companies’ remuneration committees.
It is part of a four-pronged strategy to tackle executive pay, which include plans for shareholders to be given more powers to block excessive pay proposals and payments for failure. Firms will also have to justify high salaries with clearer and more informative remuneration reports.
Vince Cable fleshed out the details of these proposals further in a speech to the Social Market Foundation earlier today.
The announcement follows on from a discussion paper which explored the issues around executive pay and company performance, and a consultation on improving company reporting.
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