UK fat cats get the blame

FAT-CAT executive packages are seriously harming the image of big business in the UK, according to investors and analysts.

Nearly three-quarters of those polled by MORI for the Investor Relations Society voiced concern over increasing executive pay, while 94% agreed that compensation should be linked more closely to performance.

But it is not just financial performance that counts. More than 40% of investors rated honesty and integrity as an important factor in judging management, while 40% of analysts rated experience and expertise highly.

However, both groups consider track record as the most crucial criterion.

More than half the analysts questioned did not support the Higgs Report on improving corporate governance. More than 40% of investors were also lukewarm. Nonetheless, most of the analysts and investors believe investor relations have improved over the past year.

The majority of both groups are opposed to a move to quarterly reporting - last year both groups were in favour.