Cable says Tories ‘watered down’ executive pay curbs

LAWS to curb executive pay were greeted with a “distinctly lukewarm” response by the Conservatives when they were introduced four years ago, Sir Vince Cable has said.

Theresa May has made the issue one of her flagship policies, and today Greg Clark, the Business Secretary, will unveil what the Tories claim is a “world leading” set of corporate governance reforms.

It includes new laws forcing all listed companies to reveal the pay ratio between chief executives and their average member of staff, and a public register of companies where a fifth of shareholders have objected to executive pay packages.

Workers must also be given a say in the boardroom either as directors, or through an employee advisory council or a non-executive director who is assigned to represent their interests.

Mrs May was accused of veering towards anti-capitalism after she said at the weekend that companies that paid bosses huge sums irrespective of their performance represented the “unacceptable face of capitalism”.

Sir Vince, business secretary in David Cameron’s coalition government, said the Conservatives watered down proposals for moderating pay awards four years ago, following “very strong opposition” from business groups. The Liberal Democrats leader also accused Mrs May of “watering down” her previously stated aim of giving workers representation on boards and more regular votes for shareholders on pay.

Sir Vince said that during his time in the Cabinet the Tories were “distinctly lukewarm” on worker representation on boards.