April 22 (Reuters) - British Business Secretary Vince Cableon Tuesday warned banks and other major companies to rein inexcessive executive pay or face tighter rules, in a letter aimedat Barclays and other FTSE 100 companies ahead of theirannual general meetings.
In a letter to companies listed on the blue-chip FTSE 100index Cable reminded them how 'excessive and disproportionatepay' damaged trust.
"There is now an opportunity for companies to make peacewith the public," he said.
Cable also wrote that pressure for further legislation tolimit executive pay would be inevitable unless businesses actedresponsibly.
His warning comes days ahead of Barclays' annual generalmeeting on Thursday where Chief Executive Antony Jenkins isexpected to be criticised for last year increasing bonuses forinvestment bankers despite a drop in profit.
"This is particularly true in the banking sector where payreached dangerous levels and with Barclays in particular comingup on Thursday," Cable said adding "we will see how far theyhave listened to pressure from the people who own the banks -the shareholders".
Last year Britain tightened rules on how companies decidedirectors' pay, including requiring businesses to detail whatwas paid to each director and giving shareholders a vote onremuneration policy at least every three years.
In the "shareholder spring" of 2012, investors mountedseveral high-profile challenges to executive pay packages,frustrated at boardroom salaries rising when share prices weredeclining. Some high-profile bosses, such as Andrew Moss atinsurer Aviva Plc and Sly Bailey of British newspapergroup Trinity Mirror, stood down. (Reporting by Karen Rebelo in Bangalore and William James inLondon; Editing by Eric Walsh)
Barclays (BARC)
