Are the policies announced in the Queen’s Speech enough to reassure UK businesses?
YES
Mark Boleat
The proposals outlined in the Queen’s Speech are good news for business. Strong corporate governance is the backbone of good regulation. The government’s endeavours to reinforce shareholder votes are a welcome move that will empower them to have a stronger say on pay packages and bonuses for directors. Ultimately, it is the responsibility of shareholders and boards – not the state – to take a proactive role in ensuring their firms are travelling in the right direction. Institutional investors have been taking an increasingly hands-on approach to this in recent months and this is entirely healthy. High pay is not a problem in itself; it is high pay for failure that needs to be addressed, and the clearer and more straightforward these decisions are, the better.
Mark Boleat is policy chairman at Canada Corporation.
NO
Simon Walker
The Queen’s Speech started well, with a strong commitment to the twin priorities of deficit reduction and economic stability. This was wise – any hint that the coalition is wavering in its aims would be devastating to the markets. But while the rest of the Speech contained some welcome measures, such as binding shareholder votes on executive pay, the government must go further to jolt the economy back into growth. Low business confidence is hobbling economic recovery, and drastic action is needed to get people spending and investing again. In many of the areas discussed in the speech, such as deregulation, pension reform and the energy market, there is a clear need to go much further, much faster. Business should be set free to deliver growth, in an environment which welcomes success, and with the infrastructure we need to get the job done.
Simon Walker is director general of the Institute of Directors.