Cable: stop big bonuses or we will

Businesses should stop big bonuses for staff otherwise the government could intervene, Business Secretary Vince Cable has warned.

The biggest 100 businesses in the UK need to crack down on bonuses to “avoid creating unwelcome incentives to focus excessively on short-term goals”, said Cable in a letter to the firms.

Getting pay wrong damaged popular trust in business and undermined the duty to promote the long-term success of the company, Cable said.

“You will be conscious that this issue continues to be the focus of considerable public debate. Unless business is seen to act responsibly, pressure for further action will inevitably result,” Cable wrote.

“Policies that reward executives out of proportion to the value they create are a clear dereliction of the duty to promote the success of the company for the long term,” he added.

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Readers' comments (1)

  • Anonymous

    Mr Cable does not understand that it is impossible to achieve this unless it is adopted on a worldwide basis. Another example of sloppy thinking and an attempt to grab headlines for political motives!

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