§ Mr. Nobleasked the Chancellor of the Exchequer if, under the £6 pay policy, companies are permitted to pay directors and executives, who are also shareholders, in the form of shares instead of cash dividends.
§ Mr. DellAll dividends, whether or not the shareholders are directors or executives of the companies concerned, and whether they are received in cash or in the form of additional shares, are limited by dividend regulations. During the year of the £6 pay limit any increases in dividends must be kept within a maximum of 10 per cent. Shares issued to directors and executives as part of their remuneration count as pay for the purposes of the pay limit.