Chuka Umunna MP, Labour’s Shadow Business Secretary, responding to Vince Cable’s letter to the FTSE 100 calling for restraint on executive pay, said:

“At a time when shareholders have become more assertive, rather than fighting their corner ministers have acted as road blocks to reform. After promising to introduce annual binding shareholder votes on remuneration, Vince Cable and the Tory-led government caved in and have failed to match their rhetoric with action.

“We need more transparency, accountability and fairness in how executive pay is set. An important step in this direction would be for firms to publish the ratio of the pay of top earners compared to average employees as well as putting employee representatives on remuneration committees. But the Tory-led government has refused to back Labour’s plans to end rewards for failure.”