Executive pay: consultation on enhanced shareholder voting rights

This consultation seeks evidence on the impact, costs, benefits and likely behavioural effects of proposals which include:

• an annual binding vote on future remuneration policy
• increasing the level of support required on votes on future remuneration policy
• an annual advisory vote on how remuneration policy has been implemented in the previous year
• a binding vote on exit payments over one year’s salary

It is built on the evidence received in response to a discussion paper on executive remuneration, published in 2011.

Following this consultation on enhanced shareholder voting rights the Business Secretary, Vince Cable, announced a reform of the framework for directors’ remuneration.