In a speech this morning, shadow business secretary Chuka Umunna will call for a greater role for shareholders within business – and remuneration committees in particular. He will say:
“I believe in shareholders’ democracy but democracy is about more than voting. If we are to empower shareholders, they need information provided through greater transparency of boardroom pay – as well as the means to mobilise and become more active in the running of their companies.”
The speech will also cover Labour’s backing for the proposals of the High Pay Commission – something which Ed Miliband did earlier this week. In particular, he will be focusing on the need for greater scrutiny on the role of remuneration consultants and will announce that Labour is looking at proposals to empower shareholders by moving towards a system where nomination committees are not composed of board members but of the four or five biggest shareholders in the company along with the non-executive chair of the board – a system already used in Sweden.