May backed by directors on shake-up
Theresa May's proposals to shake up executive pay and governance have been given the seal of approval by a leading business group.
The Institute of Directors (IoD) said it is "broadly supportive" of the new Prime Minister's proposals, which include binding votes on executive pay, having employees on boards and aligning executive pay closer to staff pay.
Oliver Parry, the IoD's head of corporate governance, said: "Theresa May has identified problems and is proposing remedies. When it comes to having workers on boards, there would be challenges in terms of training and induction, but it's something we support if done on a voluntary basis.
"We're also in favour of either annual binding votes on executive pay, rather than the current three years, or having flexibility from boards if circumstances demand that pay should be reviewed. On pay ratios, it's not always helpful, but it's something we would support on a voluntary basis." Mrs May suggested a raft of changes in a newspaper column published yesterday.