Yes, cut red tape. But shareholder votes on boardroom pay are not ‘pointless admin’
News Source
•Tue, 08 Sep 2026 17:57:42 GMT
📰 What Happened
The UK government is consulting on cutting red tape for business in a plan called 'modernising corporate reporting'. Finance writer Nils Pratley supports clearing clutter for small companies. But he attacks two ideas in the plan.
One idea would end annual shareholder votes on how bosses are paid. Another would push companies toward online-only shareholder meetings. Pratley says both would cut the transparency that investors and the public rely on.
🔍 The Backstory
Shareholder votes grew out of public anger at executive pay in the 2000s and 2010s. Britain forced companies to let investors vote on pay policies and reports. The votes are mostly advisory, but a big 'no' can force a board to change course.
Every government promises to cut bureaucracy, and the former chancellor spoke of a 'blitz on bureaucracy'. Business groups say reporting rules are too heavy. But campaigners fear losing these checks will silence the people who own the companies.
🎯 Why It Matters
Votes on executive pay are one of the few tools shareholders and pension funds have to check runaway salaries. Removing them quietly takes away a loud voice.
The UK government is consulting on cutting red tape for business in a plan called 'modernising corporate reporting'. Finance writer Nils Pratley supports clearing clutter for small companies. But he attacks two ideas in the plan.
One idea would end annual shareholder votes on how bosses are paid. Another would push companies toward online-only shareholder meetings. Pratley says both would cut the transparency that investors and the public rely on.
Shareholder votes grew out of public anger at executive pay in the 2000s and 2010s. Britain forced companies to let investors vote on pay policies and reports. The votes are mostly advisory, but a big 'no' can force a board to change course.
Every government promises to cut bureaucracy, and the former chancellor spoke of a 'blitz on bureaucracy'. Business groups say reporting rules are too heavy. But campaigners fear losing these checks will silence the people who own the companies.
Votes on executive pay are one of the few tools shareholders and pension funds have to check runaway salaries. Removing them quietly takes away a loud voice.