Britain to tackle 'fat cat' pay

Britain has proposed new laws to stop executives leaving failing companies with massive pay-offs in response to the growing public concern over "fat cat" greed.

The British Trade and Industry Secretary, Ms Patricia Hewitt, launched a new consultation document entitled "Reward for Failure" that recommends that remuneration be linked to performance.

The move follows widespread public anger at excessive severance packages for top directors.

But it was criticised as ill-judged and excessive by London-based Chartered Institute of Personnel and Development (CIPD), which said employers and shareholders were in the best position to choose an appropriate remuneration model for senior executives.