Some modest victories in taming corporate `fat cats'

HUNTING down the so-called "fat cats" in boardrooms has become a spectator sport with the pay packets of top earners coming under…

HUNTING down the so-called "fat cats" in boardrooms has become a spectator sport with the pay packets of top earners coming under even closer scrutiny from institutional shareholders. Although primarily a British obsession some of our own captains of industry, notably Michael Smurfit and Eddie O'Connor, have also drawn sniper fire over their individual salary packages.

This week saw the latest row over pay between electronics giant General Electric and some of its major shareholders who objected to a £10 million, five-year package for new managing director George Simpson. The pressure forced some amendments with GEC setting tougher performance targets much to the annoyance of Lord Weinstock who criticised outside pressures on internal company policy at yesterday's GEC annual general meeting.

Despite the Greenbury guidelines, remuneration is seen by many as a private matter between themselves and their employer. One director of a quoted financial institution in Britain this week reportedly cited "potential person repercussions" in support of his need for privacy. His mother-in-law happens to be a shareholder and receives company accounts. She is threatening to re-write her will in favour of her other children.