§ Lord Avebury
asked Her Majesty's Government:
Whether they consider that windfall profits of £54 million made on share options by directors of Britain's 250 largest companies in 1994 and 1995 adversely affect attempts to restrain wage settlements; and whether they plan to introduce any fiscal or other measures to lessen the differential of earnings between directors and other employees.
§ Lord Fraser of Carmyllie
Senior managers' remuneration is a matter for companies and their shareholders, not the Government. We do not expect the profits made on share option schemes to have any direct impact on pay negotiations in general. However, the tax changes announced in the Budget will limit tax relief on share option schemes to options worth a maximum of £20,000.