U.K. moves to curb runaway executive pay

Jan. 8, 2012 at 5:10 PM
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LONDON, Jan. 8 (UPI) -- British Prime Minister David Cameron says he wants new laws to give company shareholders power to combat skyrocketing executive pay levels.

The government is preparing to introduce new rules which will force companies to provide detailed information on their executives' pay, Cameron said, and give shareholders the legal right to turn down what they deem to be excessive pay packages, The Sunday Telegraph reported.

"What I think is wrong is pay going up and up and up when it is not commensurate with the success companies are having," Cameron said. "Big rewards" for corporate failure "make people's blood boil."

Under the new proposal, employees could also be given positions on company remuneration committees which decide executive pay packages, the newspaper said.

"Some people are worth 2 million pounds ($3 million) because they have added masses of jobs, masses of investment, masses of growth," Cameron said.

"But where there was excessive growth of payment, unrelated to success, frankly ripping off the shareholder and the customer, and is crony capitalism and is wrong. It's also, and this is the key point, payments for failure."

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