Banks push back on executive pay reform

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The British Bankers’ Association is warning the Government not to further curb executive pay, according to the Daily Telegraph.

The BBA has told the Department for Business, Energy and Industrial Strategy that the pay rules rolled out in 2013 are “working satisfactorily”.

The trade body laid out its position in its response to Government green paper on corporate governance reform issued in November 2016.

The green paper contains proposals to toughen rules around how often shareholders get binding votes on executive pay.

The BBA response says: “Given the current regime is still relatively new, and there appears little evidence that shareholders consider they need additional powers at this stage, we believe it is premature to propose further significant changes.”

The body adds that it would not want annual binding votes on top-level pay packets.

The BBA says the furthest it would be comfortable with is for binding votes on pay if at least 75 per cent of the previous year’s shareholders had not agreed on a deal.

In other news, the Financial Reporting Council has launched a review of the corporate governance code, which also raises the prospect of tougher rules over executive pay.

The accounting watchdog is only allowed to sanction chartered accountants, which leaves many chief executives outside its remit.