§ Dr. GibsonTo ask the Secretary of State for Trade and Industry what plans he has to introduce legislation to implement the recommendations of the Greenbury report; and if he will make a statement. [79537]
§ Mr. Ian McCartneyThe Greenbury report made recommendations to a number of groups and organisations. Some organisations, such as the Government and the London Stock Exchange, have implemented their recommendations in full.
The Government have noted, however, that some listed companies have not yet adopted sufficient transparency in their Reports such that shareholders have access to the information they may reasonably require to enable them to assess the company's general policy on executive remuneration. The Government also wish to see clearer evidence that boards are complying with the Greenbury recommendation that they
307Wshould consider each year whether the circumstances are such that shareholders should be invited to approve the policy set out in their remuneration report".In addition, the Government would like to see institutional investors using their power and influence to ensure the implementation of best practice as set out in the Greenbury Code.
I have asked my officials to monitor the current round of annual general meetings for evidence of a more positive approach to the Greenbury Code from companies and institutional investors. I will consider the case for legislation to amend the Companies Act 1985 in the light of the results of this monitoring.