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.
The below Parliamentary question was asked by Lord Mendelsohn on 2016-05-09.
To ask Her Majesty’s Government whether the NHS is excluded from the current Transatlantic Trade Investment Partnership draft documents, and whether they will publish the legal advice they previously commissioned, in full or in summary, regarding the risk to the NHS of litigation by US private health companies.
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 2016-06-07.
To ask Her Majesty’s Government whether the ban on referral fees in insurance claiming has taken effect, and whether they have raised concerns with the Solicitors’ Regulation Authority over its role in enforcing compliance.
Lord Faulks
The payment and receipt of referral fees by legal services providers in personal injury claims is banned under Part 2 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 which was implemented on 1 April 2013.
This Ministry of Justice is in regular contact with the regulators of legal services providers, including the Solicitors’ Regulation Authority, about issues relating to enforcement.
The below Parliamentary question was asked by Lord Mendelsohn on 2015-12-09.
To ask Her Majesty’s Government what consultation they carried out about prohibiting public sector employers from providing a check-off service.
Baroness Neville-Rolfe
We have not undertaken a formal consultation. This clause will receive full Parliamentary scrutiny during the Bill’s passage through Parliament.
The below Parliamentary question was asked by Lord Mendelsohn on 2016-04-25.
To ask Her Majesty’s Government whether they track executive pay; and whether they collect data on what percentage of Long Term Incentive Plans were changed for FTSE 100 companies when performance changed negatively.
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.