The National Association of Pension Funds (NAPF) commented on Government plans to tackle executive pay which were set out by Business Secretary Vince Cable today (Mon).
Joanne Segars, NAPF Chief Executive, said:
“As major institutional investors, the NAPF welcomes today’s announcement from Vince Cable, which is in line with much of what we have been arguing for.
“Greater transparency and simpler pay structures are a must. Boiling all the pay awards and bonus options down to a single figure will help shareholders hold executive pay up to the light.
“We echo the call for more diversity among decision makers. There has long been a need for a wider mix of people on company boards and remuneration committees. Fresh perspectives and experiences are invaluable in securing the long-term health of a business.
“But the introduction of a binding vote needs to be handled very carefully, and shareholders need to know more about what it means. A vote must not impede the effective management of businesses, or the constructive dialogue between shareholders and boards.”
Notes to editors:
The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,200 pension schemes with some 15 million members and assets of around £800 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683, [email protected]
Christian Zarro, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, [email protected]