Call for fresh line on fat-cat pay

THE head of shareholder group Pirc today called for a fresh approach on executive pay after advertising giant WPP was embarrassingly forced into retreat over its proposed £112.5m executive pay scheme.

Alan MacDougall said his organisation would like to see a 'forum' where shareholders and companies could discuss their concerns in private to avoid red-faces in the City.

MacDougall told the BBC today that the days of cutting backroom deals should end and a more organised arrangement for institutional investors to meet with companies should be established.

MacDougall's call comes after a series of run-ins between some of Britain's biggest companies and their shareholder supported by the Pensions and Investment Research Consultancy amid accusations of 'fat-cattery' over some of the proposed multi-million pay packages for board directors.

The war of words culminated in a 'peace talks' dinner for directors and institutional investors earlier this week at London's RAC club organised by the CBI and the Investment Management Association headed by Dick Saunders.

WPP has postponed next Wednesday's extraordinary general meeting called to endorse its proposed five year equity acquisition plan to make entitlement changes.

The plan could eventually pay out £44m to its chief executive Sir Martin Sorrell, making a total £112.5m for its top 19 executives.