Question

To ask the Secretary of State for Business, Innovation and Skills, if he will bring forward proposals to curb excessive pay increases for senior executives; and if he will make a statement.

The Government has taken decisive action to restore the link between top pay and performance.

In October 2013 new laws comprehensively reforming the governance of company directors’ pay came into force, boosting transparency so that shareholders have adequate information, and giving them the power to hold companies to account.

We are also seeing good signs of improved engagement between investors and companies: with a clear impact on directors’ pay awards. The latest evidence shows that median total remuneration awarded to FTSE100 CEOs fell by 5% in 2012 and by a further 7% in 2013. At the same time 35% of CEOs and 30% of executive directors in FTSE100 companies did not receive a salary increase in 2013.

The Government is monitoring the impact of the reforms and will consider further measures if necessary.