“Employers understand the drive towards greater transparency in executive pay, stronger links to performance and ensuring remuneration committees are independent and strong. However, today's proposals risk aiming a large sledgehammer against the wrong nut. Giving shareholders a binding vote at AGMs will prove intrusive but is unlikely to be effective.
“Rather than focussing on the pay of top managers, which are set by global markets, the government should maintain on its focus on helping employers create well paid opportunities for the rest of the workforce and ensuring it has skills to fill them.”