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Row over executive pay continues

The row over executive pay has once again reared its head, after new figures emerged indicated that the median total remuneration of FTSE 100 bosses increased by 10% in 2011 to £3.7 million.

This increase was five times the increase in annual earnings across the UK, and occurred at a time when the FTSE 100 index fell by 5%.

While many investors have warned against these excessive increases, which took place against a backdrop of unemployment and austerity, it still appears that many at the top still do not understand that the business climate has changed dramatically.

More concerning however, is the news that the Business Secretary is set to dilute plans for binding shareholder votes on executive pay, legislation for binding votes every three years rather than annually. This will no doubt enrage many hard working individuals who are working hard with little gain (although big bosses are likely to argue that they have earned their big bonuses).

So can these bonuses ever be justified? Is the Business Secretary playing a dangerous game by relaxing legislation surrounding executive remuneration?

Tell us your thoughts

This was posted in Bdaily's Members' News section by Ruth Mitchell .