Chuka Umunna MP, Labour’s Shadow Business Secretary, commenting on Income Data Services’ study of trends in executive pay, said:
“We need a better and more responsible capitalism that better serves the people of this country. Where rewards for failure exist in boardrooms, this is a bad thing for shareholders, the economy and for society.
“It is encouraging that this study has found a shift towards more long term reward structures in executive pay, linking remuneration more closely with long term company performance. This in part reflects the greater assertiveness of shareholders over remuneration policy and their refusal to accept rewards for failure.
“Labour has led calls for greater accountability, transparency and fairness in executive pay and for action to empower shareholders. But the Tory-led Government has u-turned and made an embarrassing climbdown on annual binding shareholder votes, which would have been a step in the right direction.”<div>