Furious investors face fat-cats

BUSINESSES will meet some of their shareholders tonight in a bid to end public hostility over boardroom appointments and fat-cat pay.

The meeting, co-hosted by the CBI and the Investment Management Association, comes in the wake of investors' growing anger.

'Megaphone diplomacy is bad for business all round,' said CBI director-general Digby Jones.

Last year, institutional investors led by fund manager Fidelity promoted the ousting of Michael Green from Carlton. Shareholders also rejected Glaxosmithkline's pay report.

More recently, Sainsbury back-tracked over the appointment of Sir Ian Prosser as deputy chairman after an outcry.

Tonight's meeting will provide an opportunity for investors and companies to discuss issues of concern.

Jones said: 'We don't see this as two teams lining up against each other, but one team searching for ways to work together more effectively.'

The meeting was planned last autumn to consider corporate governance issues, but its timing coincides with the latest round of pay packages of senior executives.

Last week it emerged that Barclays chief Matt Barrett took home £5m last year. Earlier this month, Luqman Arnold, boss of the ailing Abbey National, was lambasted over a package worth £1.92m last year.