Chuka Umunna MP, Labour's Shadow Business Secretary, said in response to reports of the Government's executive pay proposals:
“It is disappointing that the government is watering down its corporate governance proposals with an embarrassing climbdown on the proposal for annual binding shareholder votes on executive pay. On its own, this measure would not have been sufficient but it would have been a step in the right direction.
“At a time when shareholders are becoming more assertive and engaged, the government is failing to do all it can to empower them to hold boards to account and act as a check against excess and rewards for failure. Now is not the time to be rowing back from reform, and Labour has called for ministers to go further.
“This U-turn on what we were led to believe was a flagship policy further undermines the credibility of Vince Cable and the emasculated Business Department, and adds to the pervading sense of a Prime Minister and Chancellor out of touch with investor and mainstream opinion.”