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Executives: Pay

Business, Innovation and Skills written question – answered on 28th June 2012.

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Photo of Chuka Umunna Chuka Umunna Shadow Secretary of State for Business, Innovation and Skills

To ask the Secretary of State for Business, Innovation and Skills with reference to his proposals on executive pay, what the criteria will be for a change in company remuneration policy; and whether a company's board or shareholders will be the arbiter of whether a change in remuneration policy has occurred that would trigger a binding vote.

Photo of Norman Lamb Norman Lamb The Parliamentary Under-Secretary of State for Business, Innovation and Skills

Companies will only be able to make remuneration payments which are consistent with the last directors' remuneration policy to have been approved by shareholders. Therefore any revisions to policy will need to be put to a binding vote of shareholders before they can form part of the legally recognised and approved remuneration policy.

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