Bad bosses must repay their bonuses after crises or collapses to rebuild trust in British businesses and stop rewards for failure, some of the country’s biggest investors have demanded.
Top executives have seen their pay cut back in recent years in response to pressure from investors and the public, but investors, business groups and pay consultants told MPs this is only the first step towards a more sustainable system of rewards. One important move is to ensure companies can take back awards given to executives who later turn out to have performed poorly, misbehaved or led the company to collapse.
“In the wake of the Carillion collapse, we believe that the [UK Corporate Governance] Code should...