Euro MP Sharon Bowles slams executive pay comments
January 6, 2012 12:35 PM
Originally published by Sharon Bowles MEP
Originally published by Sharon Bowles MEP
South East Euro MP, Sharon Bowles, who chairs the European Parliament's Economic and Monetary Affairs Committee, has slammed comments made by the head of corporate governance at the Institute of Directors, Roger Barker, concerning executive pay.
Executive pay for company directors has continued to rise, with senior business figures able to sit on company boards and set each others pay.
Quoted in the Financial Times, Mr Barker challenged moves to reform remuneration committees, which many see as essential to curbing the practice of corporate self-reward.
Mr Barker said:
"The buck has to stop with company directors and that is why remuneration committees should consist only of company directors."
Responding, Sharon Bowles MEP said:
"I fundamentally disagree that company directors should be able to set their own pay and that of their peers, behind closed doors, regardless of performance.
"I think it is outrageous that the head of corporate governance at the Institute of Directors should make such comments, particularly at a time when people are feeling the pinch of austerity.
"Remuneration, shareholder approval, and transparency are live issues in Europe with regard to corporate governance and I have already put forward various proposals during the consultation phase.
"The line that the buck stops with company directors is a fallacy - they get the bucks and it is employees who lose their jobs when bad decisions are made. Indeed, it is thousands of hard working people who make companies successful. They, in turn, should have a say on pay increases for the boardroom few."
ENDS