Vince Cable to focus on the other City salaries?
Vince Cable is calling for greater transparency of executive salaries at a time when top wages are being scrutinised in the further education (FE) sector.
The business secretary launched a consultation document at the Liberal Democrat conference last week that hopes to expose directors on top wages and give shareholders the right to block excessive pay.
The consultation paper, titled ‘The Future of Narrative Reporting’ has been published by the Department for Business, Innovation and Skills (BIS) and looks at proposals to improve reporting on remuneration.
This includes requiring companies to provide information on the links between the performance of specific companies and top executives earnings.
The comments by Vince Cable coincide with the ‘you decide’ coloumn in the last edition of FE Week, which published the top salaries at two not-for-profit awarding bodies.
Charity Commission records show that City & Guilds had 105 employees with a salary of at least £60,000 in 2010, of which four were more than £200,000.
The top salary for Chris Jones, Director General at City & Guilds, was in excess of £420,000.
A spokesperson for City & Guilds said: “As a successful business with a charitable purpose, our financial reporting is transparent and readily available to the public.
“We need the right talent, who are appropriately remunerated, in place to drive our business and therefore the industry forward.”
In contrast AQA, a larger awarding body, had no-one earning more than £130,000.
A spokesperson for BIS said: “Awarding bodies are independent organisations and determine their own pay and other governance structures.”
FE Week will continue to look at the salaries paid to executive positions in the FE sector.
See the top salaries in full on the FE Week website at: http://www.feweek.co.uk/index.php/2011/09/15/fe-week-you-decide