FairPensions has responded to Vince Cable's decision to hand more power to shareholders in order to curb excessive executive pay. Speaking in response to Cable's announcement, the charity's CEO said that binding shareholder votes won't be enough to challenge a culture of spiralling remuneration for company directors.

Catherine Howarth, CEO of FairPensions, called on investors to rise to the challenge set by Vince Cable's proposals:

"Today's announcement puts significant and welcome pressure on major shareholders to use their influence to stop rewards for mediocrity in British companies. Big shareholders have much to prove in the year ahead."

But Ms Howarth, CEO of FairPensions, also called on government to go further in turning the spotlight onto investors' own duties to the savers whose money they manage:

"Government proposals for a binding vote on executive pay are welcome but to pretend that this alone will solve the high pay problem is either naïve or disingenuous. More searching questions need to be asked about how shareholders will use these new powers.

"Government should embrace the positive agenda outlined by Jon Cruddas in the Commons last week, by making shareholders more accountable and responsible. This means requiring much greater transparency to savers on how votes are cast. It also requires legal changes to clarify that investors' duties do not begin and end with maximising short term profit."