LONDON -- When Sir Martin Sorrell, chief executive of international ad agency WPP
But that is all going to change, as Business Secretary Vince Cable is set to announce the introduction of mandatory pay votes.
They're our millions!
As shareholders, we should be concentrating on trying to make our own millions, rather than being forced to hand them out to underserving bosses. And if you don't think that's really possible, have a look at the Motley Fool's free report, "10 Steps To Making A Million In The Market" -- it just might surprise you. So this news has to be good for us.
The plan will see companies listed on the FTSE 100
Shareholders are revolting!
It has taken a long time and a number of shareholder revolts for this to come about.
Only last month, FTSE 100 insurer Aviva
Other companies have seen rebellions without actually losing their vote. Barclays
Bookmaker William Hill
There have also been revolts at miner Xstrata, which has seen its share price slide, and at struggling Premier Foods, whose shares are down more than 60% in the last 12 months. And shareholder discontent at Trinity Mirror finally forced out deeply unpopular boss Sly Bailey after her pay had soared while the shares tumbled 90%.
The answer to our problems?
So will the new rules put an end to all of this? Well, there will still be shareholder discontent from time to time, but we will finally have the power to do something about it, rather than having to sit back and be fleeced. Some will be disappointed by the three-year cycle and would prefer such a vote every year, but it may be good to start with a longer-term perspective and minimize knee-jerk actions. And at least top bosses will finally be accountable to those who pay their wages.
David Kuo challenged his Motley Fool analysts to pinpoint the attractive sectors of 2012 -- and they delivered! Discover the industries they selected in this new Motley Fool guide -- " Top Sectors for 2012 " -- while it's still free!
Further investment opportunities:
Alan Oscroft does not own any shares mentioned in this article. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.