The Institute of Directors (IoD) has warned that companies will have to take action over executive pay or face the possibility of prompting fresh legislation.
Simon Walker, director general of the IoD, is quoted in the Financial Times saying they need to “recognise” that action was required on pay settlements “which a lot of people think are too high”.
He added: “There is a danger of more legislation that will not be helpful.” Walker has been recently quoted elsewhere saying companies were in “the last chance saloon” on pay.
The FT reports that “shareholder dissent” on pay has reached 2012 levels with seven protest votes above 25% on non-binding remuneration reports among FTSE 100 members.
In April almost 60% of BP’s shareholders voted against the £14m pay package for CEO Bob Dudley, while just over 50% of Smith & Nephew’s shareholders voted against pay arrangements.
Meanwhile, April also saw pay deals at engineering group Weir voted down by a 72.4% vote.
A host of companies have now pledged to listen to shareholders on remuneration.