Adur, West & East Worthing Party including East Arun

Bowles cries “Over-the-top executive pay increases must stop”

Sharon Bowles Member of the European Parliament for South-East England, who chairs the European Parliament’s Economic and Monetary Affairs Committee, has criticised some FTSE 100 bosses for demanding ‘over the top’ pay increases at a time of austerity.

Despite pay freezes and job cuts across the public and private sectors, executive pay for company directors has continued to rise, with business bosses able to sit on company boards and set each other’s pay.

According to a survey by Manifest and MM&K published this week, the median total remuneration of FTSE 100 bosses increased by 10% last year to £3.7 million.

Sharon, who is also leading the European Parliament’s negotiations on the Capital Requirements Directive – which addresses remuneration and makes Basel III rules EU law⃰, said:
At a time when people are feeling the pinch of austerity, it is inappropriate for business bosses to be demanding more money, regardless of performance. The fact that Aviva and Cairn Energy have already lost remuneration votes this year goes some way to explaining the mood of shareholders at this time.The message is very clear: over-the-top executive pay increases must stop.”

Sharon added:
“This is even more evident as we now come to crunch time for bankers’ bonuses, as we implement Basel III into EU law. I am glad the issue is out in the open – for too long bonus deals have been done in the dark but it should be a matter of public interest.”
⃰Basel III is the internationally agreed minimum level of capital that banks must hold. The European Parliament has also proposed alongside this a 1:1 ratio on fixed income to bonus.