Fund group CEOs lambasted by MPs over conflict of interest on pay

Asset managers not doing enough to curtail excessive pay

Asset managers faced stinging criticism from politicians on their credentials as responsible investors when it comes to pushing for change on executive pay at FTSE 100 firms.

In a report published earlier this week on top companies' excessive executive pay packages, MPs on parliament's business select committee said asset managers were not doing enough to curtail pay through engagement with the companies they invest in and suggested that high salaries at fund groups were partly to blame. Institutional investors in particular can push for change in the companies they invest in through talking to executives, using their votes and threatening divestment. Government to force firms to reveal pay ratio of CEOs and the average worker "In general stewardship is...