My Lords, directors' remuneration is a matter for companies and their shareholders. In August 2002, the Government introduced the Directors' Remuneration Report Regulations, which introduced for the first time the requirement for quoted companies to produce a detailed directors' remuneration report and for a shareholder vote on that report. We are encouraged by the fact that shareholders have been vigorously exercising their new rights in that area.

The options presented in the Department of Trade and Industry document, Directors' Remuneration—Contracts, Performance and Severance, published on 3rd June, are currently subject to consultation that closes on 30th September. Any further government action on the issue will be considered in the light of the responses to the consultation.