HC Deb 27 July 1998 vol 317 cc51-2W
Mr. Jenkins

To ask the President of the Board of Trade what research her Department has evaluated into the proportion of output costs represented by the salaries of company directors in(a) the UK, (b) other EU countries, (c) Japan and (d) the USA. [52393]

Mr. Ian McCartney

The Department has not carried out any such comparative research; nor is it aware of any such research carried out by others.

Mr. Winnick

To ask the President of the Board of Trade if she will state the Government's policy towards substantially above the inflation rate salary increases for senior directors, managing directors and chairmen in the private sector. [52466]

Mr. Ian McCartney

It is essential for Britain's competitiveness that companies pay full regard to the fundamental Greenbury principles of accountability, transparency, and performance in setting directors' remuneration. The Government believe that a best practice approach to boardroom pay is preferable to one enshrined in legislation, provided best practice is seen to be working. The President made it clear in her speech on corporate governance in March that she believed that many listed companies were failing to comply with the spirit of the best practice framework. She said that the Government would consider a range of options, including legislation, if there was no evidence of a more positive and responsible approach from companies.

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