Fat cats are still finding the cream

ATTEMPTS to crack down on fat cat excess are faltering with nearly half of the UK's top 400 companies failing to implement measures aimed at curbing overblown pay packages for top directors.

BAE Systems, Airtours and pub chain Wetherspoon are among the 49% of companies that flouted a shareholder recommendation that only independent non-executive directors should set bosses' pay. Critics say the measure is ineffectual, as it did nothing to prevent scandals such as the Marconi and Railtrack payoffs to failed executives.

The Government recently announced steps to give investors the right to vote on boardroom pay in the wake of the Marconi scandal.

The National Association of Pension Funds, representing powerful company retirement schemes, also found that 41% of firms are also disregarding shareholders' wishes by giving contracts to directors with more than 12 months' notice, enabling directors who fail to perform to walk away with several years' money.

Four out of five companies fall short on corporate governance. Other recommendations include separating the chairman and chief executive jobs, and appointing a senior non-executive responsible for spearheading any criticism of the management. The NAPF's Chris Baldry said: 'Examples of mismanagement remain all too frequent.'