Fund Manager Backs MP’s Plan to Rein in Executive Pay

Chris Philp, the MP for Croydon South, is also calling for shareholders to have a binding vote on pay at annual general meetings in order to keep a check on awards that could be socially divisive and bad for business. Philp proposes forcing large companies to set up committees of their top five shareholders to approve pay deals before they go to the AGM. The committees would also recommend the appointment and removal of directors and question the board on strategy. The company chairman and an employee representative should take part in the meetings, giving workers a voice, though neither would have a vote, Philp recommends in a paper published on Thursday. He says the employee should not be a trade union official and should be elected by all the workers.