The below Parliamentary question was asked by Lord Mendelsohn on 2016-01-27.
To ask Her Majesty’s Government how many regulation-making powers are contained in the Trade Union Bill.
Baroness Neville-Rolfe
The Trade Union Bill contains 12 regulation making powers. Details are set out in the Delegated Powers memorandum, updated ahead of introductions in to this House in November 2015. A summary is attached.
The below Parliamentary question was asked by Lord Mendelsohn on 2016-05-03.
To ask Her Majesty’s Government whether they support annual executive pay votes by shareholders, and whether they intend to legislate to stop three-year votes on that issue.
Baroness Neville-Rolfe
It has not proved possible to respond to this question in the time available before Prorogation. Ministers will correspond directly with the noble Lord.
The below Parliamentary question was asked by Lord Mendelsohn on 2016-05-24.
To ask Her Majesty’s Government what steps they are taking to encourage better customer service in insurance companies that allow for consumers to make free claims.
Lord O’Neill of Gatley
The Government is determined that insurers should treat customers fairly and firms are required to do so under the Financial Conduct Authority (FCA) rules.
The FCA’s Insurance Conduct of Business Sourcebook (ICOBS) sets the conduct standards required of insurance firms in relation to their business which aim to ensure consumers are treated fairly. This includes provisions relating to the handling of claims by insurers. ICOBS states that insurers must handle claims fairly and promptly; provide reasonable guidance to help a policyholder make a claim, and appropriate information on its progress; not reject a claim unreasonably; and settle claims promptly once settlement terms are agreed.
The below Parliamentary question was asked by Lord Mendelsohn on 2016-04-25.
To ask Her Majesty’s Government what assessment they have made of the Executive Remuneration Working Group’s conclusions that executive pay is not fit for purpose” and that extensive reform is needed to allay “widespread scepticism and [the] loss of public confidence”.”
Baroness Neville-Rolfe
The Government has noted the views set out in the interim report of the Executive Remuneration Working Group.
Government reforms introduced in 2013 provide a significantly more transparent and robust governance framework for executive pay. The reforms give shareholders a binding vote at least every three years on company pay policies and an annual vote on the remuneration report which sets out exactly what directors have been paid. The annual vote is advisory but if the shareholders vote down the report, the company has to bring a revised pay policy to the next Annual General Meeting.
These reforms give shareholders effective powers to challenge excessive executive pay and to hold boards to account on pay policies and it is now for investors and companies to engage constructively to ensure that pay policies are fit for purpose and that they align the interests of executives, shareholders and companies.
Evidence from the current round of Annual General Meetings is that the reforms are having an impact and that shareholders are increasingly willing to use these powers where they are dissatisfied. BP and Smith and Nephew’s shareholders, for example, voted against their companies’ remuneration reports and the shareholders of Weir Group voted against that company’s remuneration policy in a binding vote. There have been significant shareholder votes against the remuneration reports at a number of other companies.
The Government has no current plans for further legislation or regulation, but expects to see companies liaising effectively with shareholders and adjusting pay policies where there is shareholder dissatisfaction.
The below Parliamentary question was asked by Lord Mendelsohn on 2016-05-03.
To ask Her Majesty’s Government whether they will introduce a duty on shareholders of a significant size to address executive pay and company performance and increase those shareholders’ reporting requirements to pension trustees.
Baroness Neville-Rolfe
It has not proved possible to respond to this question in the time available before Prorogation. Ministers will correspond directly with the noble Lord.
The below Parliamentary question was asked by Lord Mendelsohn on 2016-05-24.
To ask Her Majesty’s Government what assessment they have made of how many authorised claims management companies have been operating over the last five years.
Lord Faulks
The total number of authorised claims management companies (CMCs) operating over the last five years is as follows:
|
Year |
2012 |
2013 |
2014 |
2015 |
2016 |
|
Total Authorised CMCs (at end March) |
2998 |
2693 |
2097 |
1752 |
1610 |
This information is included in the CMR Annual Report, which can be found at gov.uk.
The below Parliamentary question was asked by Lord Mendelsohn on 2016-04-25.
To ask Her Majesty’s Government what assessment they have made of the Executive Remuneration Working Group’s conclusions, and whether they have any plans either by statutory means or by Ministerial engagement to ensure greater transparency in relation to executive pay, clearer alignment of shareholder, company and executive interests, more accountability on the part of remuneration committees and greater engagement with and control by shareholders working through company boards.
Baroness Neville-Rolfe
The Government welcomes the interim conclusions of the Executive Remuneration Working Group. They represent a valuable source of ideas for ensuring more effective engagement between investors and directors and ensuring that executive pay policies are tailored to the needs of individual businesses. We also welcome the Working Group’s plans to consult interested stakeholders on practical ways of improving the current approach to executive pay. Departmental officials will be engaging with the roundtables that are being planned.
The Government made significant reforms to the governance of executive pay in 2013. Under these reforms, companies are required to put their pay policies to shareholders at least every three years. These policies have to include information on how each director will be paid and how that is linked to different levels of performance. This is subject to a binding vote. Companies also have to provide shareholders with an Annual Remuneration Report which reports the pay of each director in a single figure and again has to set out clearly how the actual payments relate to performance. Shareholders have an advisory vote on this report, but if they reject the report, the company must submit a revised pay policy to a binding vote at the next AGM.
These reforms give shareholders effective powers to challenge excessive pay and hold boards to account on executive pay policies. There is strong evidence from the current AGM season that shareholders are willing to use these powers, particularly where levels of pay are out of line with performance.
The Government has no current plans for further legislation or regulation, but is looking for firm evidence that companies are liaising effectively with shareholders and adjusting pay policies where there is shareholder dissatisfaction.
The below Parliamentary question was asked by Lord Mendelsohn on 2016-05-09.
To ask Her Majesty’s Government when they plan to publish the draft Transatlantic Trade Investment Partnership agreement and any information they have on risks to the NHS posed by that draft treaty.
Lord Price
It has not proved possible to respond to this question in the time available before Prorogation. Ministers will correspond directly with the noble Lord.
The below Parliamentary question was asked by Lord Mendelsohn on 2016-05-24.
To ask Her Majesty’s Government what assessment they have made of the percentage of claims management companies that have faced some sort of intervention from the Information Commissioner’s Office.
Baroness Neville-Rolfe
The Information Commissioner’s Office (ICO) works closely with the Claims Management Regulator (CMR) and they regularly share intelligence and information about issues of mutual concern involving claims management companies (CMCs).
There are a total of 1,752 authorised CMCs, of which 21 CMCs were placed under investigation by the ICO during 2015-2016, amounting to 1.2% of the total. Some of which resulted in formal enforcement action.
Further information can be found in the attached Claims Management Regulation Annual Report. Details of all the ICO’s enforcement action are published on its website at: https://ico.org.uk/action-weve-taken/enforcement/“
The below Parliamentary question was asked by Lord Mendelsohn on 2016-04-25.
To ask Her Majesty’s Government what assessment they have made of the FTSE share index of public companies trading at broadly the same levels as 1998 whilst executive pay over the same period has trebled.
Baroness Neville-Rolfe
Executive pay has risen significantly since 1998 and the link between top pay and company performance has sometimes been weak. That is why the executive pay reforms brought in by the Government in 2013 included measures to clarify the links between pay and performance as well as giving shareholders a stronger say. Company remuneration policies (on which shareholders now have a binding vote at least every three years), for example, must include information on how directors’ pay is linked to different levels of performance. In addition, the Annual Remuneration Report, which sets out what directors have been paid in the past financial year, has to set out clearly how the actual payments made relate to performance.
It is too soon to form firm conclusions about the impact of the 2013 reforms. Executive pay is typically set on a three year cycle and the reforms have not yet reached their third anniversary. However, there is growing evidence from the current AGM season that shareholders are prepared to use the new powers, particularly where pay is out of line with company performance.
The Government does not track executive pay across the more than 1,000 companies subject to the Regulations. We do however work closely with independent researchers that regularly survey the level and structure of pay, such as Manifest, and with key stakeholders such as the Investment Association and the Financial Reporting Council to ensure that we have access to the evidence needed to keep executive pay under review.