01 July 1999
"Old Boys'" network runs remuneration committees
Fat cat directors have their boards' remuneration committees to thank for their annual salary increases. Labour Research examined the composition of the remuneration committees of 98 of the largest FTSE 100 companies to find out who is responsible for some of the whopping pay rises enjoyed by many UK company directors.
The survey found that:
* just 392 directors made up the remuneration committees of these 98 companies;
* just 33 (8.4%) of these directors are women;
* 30 directors sit on more than one remuneration committee and between them hold 67 remuneration committee positions on top of other directorships.
* two directors each have four seats on remuneration committees and a further three directors each hold three such positions.
The Labour Research survey found five directors who sat on three or four remuneration committees. The two busiest are Sir Michael Angus and Sir John Banham, both with four such positions. For Sir Michael these are NatWest bank, British Airways (where he is also deputy chair), brewer Whitbread (where he is also chair) and retail and pharmaceutical group Boots. Sir John, former director general of the Confederation of British Industry, chairs both building materials group Tarmac and retailer Kingfisher as well as sitting on their remuneration committees. In addition he has part-time boardroom and remuneration committee positions at finance group AMVESCAP and utility National Power.
The directors found by Labour Research to have three positions on remuneration committees are: Sir Ralph Robins on the remuneration committees of Standard Chartered bank, telecoms group Cable and Wireless and retailers Marks and Spencer in addition to being chair of defence group Rolls Royce; Sir George Bull, who sits on the remuneration committees of TV and newspaper group United News and Media, supermarket J Sainsbury and food and drink multinational Diageo; and Sir Michael Perry who is on the remuneration committees of utility Centrica, brewer and leisure group Bass and Marks and Spencer.
Notes to editorsFull details of the Labour Research survey of the composition of remuneration committees are published in the July 1999 issue of the magazine. The price of a single copy is ?2.80 (?3.10 including postage).
The Labour Research Department is an independent trade union and labour movement organisation founded 88 years ago. More than 2,000 trade union organisations, including 55 national unions, representing 99% of total TUC membership are affiliated.
For more details contact Neal Moister on 0171 902 9818.