Aberdeen Asset Management urges tougher rules on pay
A more robust benchmark for executive pay to get shareholder approval is understood to have been proposed to ÂWhitehall by Aberdeen Asset Management.
The fund manager has called for a change in current rules on boardroom remuneration so that businesses must receive the backing of at least 75 per cent of shareholders to win approval, rather than the current much lower threshold of 50 per cent.
Aberdeen is thought to have made the recommendation in its submission to MPs on the Business, Energy & Industrial Strategy (BEIS) committee, which is holding an inquiry into various aspects of corporate governance.
The move comes amid anger about remuneration levels at some of the UK’s biggest businesses. Last month, Legal & General, one of the UK’s largest fund managers, called on major companies to publish the difference between the pay of their chief executives and the shopfloor workforce.