John Redwood’s contribution to the statement on Executive Pay, 23 Jan

Mr John Redwood (Wokingham) (Con): I welcome anything that recognises that it is the role of shareholders and competitive markets to decide pay in companies. With that in mind, let us consider what happens where the Government are the shareholder. Will the Secretary of State remind us what deal the Labour Government signed up to for RBS top executives, explain why it was so far in excess of the dreadful results that have been delivered in public ownership, and say what this Government can do to put that right?

The Secretary of State for Business, Innovation and Skills (Vince Cable): My right hon. Friend is right to stress the central role of shareholders and to remind us about the conditions according to which the head of RBS was appointed and the contract negotiated. Of course, the problem is not just with pay; we are now also having to consider the problem of knighthoods that were awarded for appalling behaviour in British banking.

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2 Comments

  1. Ben Kelly
    Posted January 25, 2012 at 1:31 pm | Permalink

    This is one case where blaming the previous government doe not wash.

    Taxation to curb, or at least diminish the benefit of, (90% rate for the receiver and no corporation tax relief on the company) unearned bonuses can be immediately enacted.

    Those risking their own capital should remain rewarded but the troughing hoards remain an anathema. To paraphrase; why should someone working at the mean wage see risking as much as they yet living in homes they can not afford?

  2. Barbara Fairwther
    Posted January 25, 2012 at 2:53 pm | Permalink

    Sorry,don’t understand this post

  • About John Redwood


    John Redwood won a free place at Kent College, Canterbury, and graduated from Magdalen College Oxford. He is a Distinguished fellow of All Souls, Oxford. A businessman by background, he has set up an investment management business, was both executive and non executive chairman of a quoted industrial PLC, and chaired a manufacturing company with factories in Birmingham, Chicago, India and China. He is the MP for Wokingham, first elected in 1987.

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