In response to plans on executive pay outlined by BusinessSecretary Vince Cable in the Commons today (23 January 2012),Stuart Fraser, Policy Chairman at the City of London Corporation,said:"Executive pay and other incentives are not just a City issuebut one for all sectors of the economy. This is an emotive subjectand there is understandably a political will to legislate. Istrongly believe, however, that the owners of businesses should beentirely responsible for determining pay awards to managers andother staff they employ.

"The Government has recognised this by outlining plans to givenew powers to shareholders of all companies that would enable themto veto "excessive" boardroom pay at Britain"s top businesses. Ofcourse, shareholders already have considerable powers in this areabut we need to encourage them to engage in the scrutiny of thisprocess more actively.

"In a global marketplace, UK-based firms need to pay acompetitive rate in order to retain internationally mobile staff "or equally crucially attract new, talented individuals. High payfor success is perfectly acceptable, it is high pay for failurethat needs to be addressed."