Fat cat pay curbs 'to be watered down'

Theresa May is planning to water down proposed curbs on pay for top executives, according to the Daily Telegraph. The newspaper says City and Whitehall sources expect the most radical planned reforms will be shelved "in the coming weeks".

The proposals, which included giving shareholders binding votes on pay at the top of the businesses in which they are invested, are now thought too controversial for May's minority government to push through, says the paper.

At present, firms listed on the stock exchange must hold a binding vote on executive remuneration every three years. The new plans would have meant such a vote could be triggered at any time, if 25 per cent of investors expressed concern with a pay package.

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Some of the plans may still go ahead, says the Telegraph – those which do not require fresh legislation from parliament.

The papers quotes Deloitte, which says the latest figures show average bonuses for FTSE bosses on the downturn. The accounting firm asserts that current laws on pay are "working well".

Last year, May retreated from another proposal to restore trust in business when she dropped plans to force companies to have workforce representation on boards.