The Enterprise and Regulatory Reform Bill has been published, which includes giving shareholders binding votes on directors’ pay.
Vince Cable, business secretary, presented the bill to Parliament.
He said: “The measures in the Enterprise and Regulatory Reform Bill will help make Britain one of the most enterprise-friendly countries in the world.
“It will improve our employment tribunals, reform and strengthen competition enforcement, scrap unnecessary red tape, and help ensure that people who work hard and do the right thing are rewarded.”
Subject to the will of Parliament, the bill will deliver legislation aimed at encouraging long-term growth by
- Addressing the disconnect between directors’ pay and long-term company performance by giving shareholders of UK-quoted companies binding votes on directors’ remuneration. This will encourage shareholders to be more engaged and companies to listen to what they say.
- Improving the employment tribunal system by encouraging parties to come together to settle their dispute before an employment tribunal claim is lodged. It will also make the determination of less complex disputes quicker and cheaper for employers and employees alike, through a new ‘rapid resolution’ scheme.
The bill now begins its passage through both Houses of Parliament.
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