Public Limited Companies (Financial Regulation)

Part of the debate – in Westminster Hall at 2:30 pm on 13th March 2003.

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Photo of Nick Palmer Nick Palmer Labour, Broxtowe 2:30 pm, 13th March 2003

Does my hon. Friend agree that one of the key problems is that the directorships of FTSE 100 companies constitute a very small market and that the salaries involved are a relatively small proportion of the turnover of the companies? For that reason, there is always a temptation for the managing boards to say, "Let's try to outbid our competitors so that we can get this person whom we have heard is good," and that process amounts simply to bidding up demand for a small pool of people who have not been particularly successful. Perhaps companies should recruit talent from a wider pool rather than simply paying more for people whom they already know.