Cameron's pledge on executive pay risks sounding hollow

PRIME MINISTER David Cameron has promised to tackle excessive executive pay by giving shareholders a binding vote on salaries. He has also to address the matter of bonuses given to executives at poor performing companies. The latest research suggests the pay of chief executives rose by one third in the past year without a matching rise in company value. Commentators wonder whether Cameron's measures will really address fairness or just hinder business, and whether they are just political posturing to get him through the next election.
 
Companies need to take control

There is clearly a disconnection between reward and achievement that needs to be addressed, both in the companies' interests, and society as a whole, says an editorial in The Daily Telegraph. "For a government whose mantra is 'we are all in this together', the City's refusal to acknowledge the need for austerity is a constant affront," adds the Telegraph. But there is a danger that "attempts to assuage public concerns about City rewards will end up discouraging enterprise".
 
The Daily Mail, in its editorial, welcomes David Cameron's attempts to "halt the merry-go-round of 'crony capitalism' - back-scratching executives on each others remuneration committees". But ultimately nothing will change until pension funds and other big investors show "far more determination to restore fairness to the market for the top jobs".
 
Shareholders must take responsibility

The Financial Times, in an editorial, says: "One doesn't have to be a protester in a tent outside St Paul's Cathedral to feel there is something wrong about the amounts paid by companies to their top executives." The government proposes to tackle this by preventing current executives from chairing remuneration committees at other companies.
 
But a better way would be to bolster the role of shareholders, even getting them to sit on remuneration committees, adds the Financial Times. "Public confidence in shareholder capitalism can only be restored if owners recognise their responsibility."  
 
Institutional shareholders already have a vote and other mechanisms to curb pay and bonuses, says Patrick Hosking in The Times. "Sadly they – or their agents – do not use them."
 
Every party wants to claim 'fairness'

David Cameron is trying to wrestle the word fairness out of Ed Miliband's grip, says Bill Emmott, also in The Times. Yet it is a much easier word to say than to put into practice, and "exposes politicians to being seen as insincere and hypocritical."  
 
When politicians scent that one of their competitors has produced an idea that might have traction with the voters, they all want a piece of it, says Andrew Rawnsley in The Observer. There is deep discontent, even rage, "towards those whose wealth is unrelated to either talent or usefulness to the rest of society".  
 
Over the coming days, we will see David Cameron, Nick Clegg and Ed Miliband all agree that something must be done. "The party that wins this terrain will be the one that is convincing when it comes to translating words into deeds."
 
Government just buying time

There's been a clampdown on runaway executive pay coming any day since at least 1980, says Simon English in The Independent. It isn't obvious that David Cameron's latest attempt to get some action will be more successful. Cameron needs a bold move. "In all likelihood he is planning to give the impression of being bothered while hoping the economy recovers sufficiently before the next election for the boardroom pay to be forgotten." ·