‘(1) The Secretary of State will establish the High Pay Commission for the purposes of fulfilling subsection (2).

(2) The High Pay Commission will assess and make recommendations to the Secretary of State and to Parliament relating to—

(a) the level of directors’ remuneration;

(b) directors’ remuneration relative to the median of wages in the United Kingdom;

(c) the nature of remuneration packages provided to directors; and

(d) the relationship between directors’ remuneration and performance of companies in the United Kingdom.

(3) The membership of the High Pay Commission shall be decided by the Secretary of State and subject to approval by the House of Commons.

(4) Membership may be, but not confined to, representatives from—

(a) businesses;

(b) business representative organisations;

(c) trade unions; and

(d) civic society organisations.

(5) The Secretary of State will provide resources as required to enable the High Pay Commission to fulfil its objects as set out in subsection 2.

(6) The High Pay Commission will, on an annual basis, prepare and provide a report to the Secretary of State on issues affecting directors’ remuneration as set out in subsection 2 and make recommendations on the effective operation and reporting of companies’ legislation relating to directors’ remuneration.’.—(Mr Iain Wright.)

Brought up, and read the First time.

Question put, That the clause be read a Second time.

The Committee divided: Ayes 6, Noes 9.

Question accordingly negatived.