UK: Darling rejects calls for High Pay Commission

Today's Guardian newspaper reports that the Chancellor, Alistair Darling, has rejected yesterday's calls for the formation of a High Pay Commission. In an interview with the BBC, Mr Darling indicated that legislation would be introduced but the context of his comments suggests that any proposals are unlikely to appease those calling for wide reaching limits on bank and executive pay. Indeed, the Guardian reports Mr Darling's position: "I think the best way of deciding pay is between employers and employees". Instead, it's likely that the Government's proposals will focus on the role and powers of the Financial Services Authority and the recommendations in Sir David Walker's final report on bank corporate governance (to be published in November 2009).

Note: from a comparative perspective, it will be interesting to read the Australian Productivity Commission's draft report on executive remuneration, which is due to be published next month: see here for further information.