Cable’s plan for clawbacks and tougher votes on director pay

SHAREHOLDERS will be given binding votes on executive directors’ pay as part of coalition plans to reform the corporate landscape.

Business secretary Vince Cable, left, said he also wants to make it easier for companies to claw back money from directors if poor performance subsequently emerges. But he dropped plans for workers’ representatives to sit on remuneration committees. Companies will also escape having to publish pay ratios, showing the gap between highest- and lowest-paid members of staff.