Reuters London

British Business Secretary Vince Cable warned banks and other major companies yesterday to rein in excessive executive pay or face tighter rules, in a letter aimed at Barclays and other FTSE 100 companies ahead of the bank’s annual general meeting.

In a letter to companies listed on the blue-chip FTSE 100 index, Cable reminded them how “excessive and disproportionate pay” damaged trust.

Cable wrote that pressure for further legislation to limit executive pay would be inevitable unless businesses acted responsibly.

His warning comes ahead of Barclays’s annual general meeting today, where chief executive Antony Jenkins is expected to be criticised for increasing bonuses for investment bankers last year, despite a drop in profit at the unit of Britain’s biggest bank.

Last year Britain tightened rules on how companies decide directors’ pay, including requiring businesses to detail what was paid to each director and giving shareholders a vote on remuneration policy at least every three years. – Reuters