Similar to say-on-pay votes in the United States, votes on executive compensation in Britain are advisory votes only, meaning that boards there are free to ignore them. But that could be changing in the near future.
Earlier this week, Vice Cable, U.K. business secretary, told Parliament that the Cameron administration was considering a proposal to make say-on-pay votes binding and to propose other measures to rein in compensation “excesses,” including exit packages in excess of one year’s salary.
