Speaking today before Parliament, U.K. Business Secretary, Vince Cable, confirmed to British lawmakers the government's intent to empower and encourage shareholders to curb pay "excesses" through offering a binding vote on future pay as well as on notice periods and exit packages in excess of one year's salary.

"The evidence is clear that business and investors recognize there is a disconnect between top pay and company performance and that something must be done," Cable told lawmakers in the House of Commons, according to Bloomberg News. "We cannot accept top pay rising at five times average workers' pay as we did last year."

The government's proposal would also require companies to publish "more informative remuneration reports" to include a single figure for total pay, and Cable called for remuneration committees that were more diverse, including, potentially, two members who had not served on boards before. 

The opposition Labor Party has sought to allow for employee representation on remuneration committees, though Cable's speech gave no backing for such a mandate.

Plans to introduce binding votes on pay would require a new law and Cable told lawmakers the government would initiate consultations on how best to implement both votes, Bloomberg reported.

Britain's National Association of Pension Funds welcomed the government's proposals though warned against the potential for unintended consequences stemming from a binding vote. "[T]he introduction of a binding vote needs to be handled very carefully, and shareholders need to know more about what it means," NAPF Chief Executive Joanne Segars said in a statement today. "A vote must not impede the effective management of businesses, or the constructive dialogue between shareholders and boards."

Similarly, the Confederation of British Industry welcomed most of Cable's proposals while expressing concerns over a binding pay vote suggesting shareholders will be "second-guessing and 'man marking' directors."