Chuka Umunna MP, Labour's Shadow Business Secretary, commenting on reports that the government is abandoning its proposal for annual binding votes on executive pay, said:
“It is greatly disappointing that the government is backing down on its proposal for annual binding shareholder votes on executive pay. At a time when shareholders are becoming more assertive and activist in their approach, the government appears to be turning the other way, showing itself to be out of step with the tide of investor opinion.
“The Prime Minister said he wanted to empower shareholders, but has failed to stand up to vested interests and match these words with action. Instead of driving the change we need to see, he has fallen at the first hurdle, continuing to act as a road block to the change and reform we need to see in Britain boardrooms.
“This latest u-turn, with the government drastically watering down its flagship proposal on improving corporate governance five months after it was announced with such fanfare, only adds to the sense of chaos and shambles at the heart of government. Labour has called for ministers to go further in increasing transparency, accountability and fairness in executive pay, but instead Ministers are rowing back.”