Proposed by Councillor Simon Holbrook

Seconded by Councillor Bob Moon

(1)  Council notes the research produced by Income Data Services, showing that pay for directors of the top 100 FTSE companies has risen by 55% in one year (between June 2009 and June 2010) at a time when ordinary workers face severe restraints on pay.

(2)  Council also notes the review, currently being undertaken by the Department of Business, Innovation and Skills, into corporate governance and economic short-termism, including directors' remuneration; A Long-Term Focus for Corporate Britain, which is likely to recommend stronger links between company performance and executive pay.

(3)  Council welcomes the comments by TUC Secretary Brendan Barber, encouraging pension funds to exercise their rights as shareholders at company AGMs to vote against excessive chief executive, board level and banker pay and bonuses.

(4)  Council believes that the Merseyside Pension Fund should adopt and actively pursue a policy of restraint and social responsibility in relation to the pay and bonuses of senior executives of the companies that it invests in.

(5)  Council therefore instructs the Director of Finance, working with the Pensions Committee, to seek the agreement of the other Merseyside Councils to implementing this policy at the earliest opportunity, to further strengthen the Statement of Investment Principles as appropriate and to report annually on the actions taken in relation to this policy.

Amendment submitted in accordance with Standing Order 7(2).

Proposed by Councillor Ann McLachlan

Seconded by Councillor George Davies

Delete all and replace with:

(1)  Council notes that Merseyside Pension Fund through its affiliation to the Local Authority Pension Fund Forum actively promotes shareholder activism and the collective investment interests of the majority of local authority pension funds throughout the UK.

(2)  Council notes that Merseyside Pension Fund has recently set up a Risk and Governance Working party to take forward its work in this area.

(3)  Council notes that a principal priority for the Merseyside Pension Fund is to ensure it meets its fiduciary responsibility to past, present and future pensioners and the tax payers of Merseyside.

(4)  Council notes the singular failure of the present Conservative/Liberal coalition Government to take action to bring forward legislation to curb the bonus culture in the City and, in particular, to set an example of best practice corporate social responsibility by refusing to allow RBS, which is a publicly owned bank, to make obscene and inappropriate payments to its staff.

(5)  Council believes that, in the light of this failure, and in the light of the actions already being taken by the Merseyside Pension Fund, the Liberal Democrat Notice of Motion, while non contentious in itself, can only be seen as political window dressing which aims to divert attention from the Government’s craven refusal to tackle the real issues.

The amendment was put and lost (22:41)

The motion was put and carried (63:0)

Resolved (63;0) –

(1)  Council notes the research produced by Income Data Services, showing that pay for directors of the top 100 FTSE companies has risen by 55% in one year (between June 2009 and June 2010) at a time when ordinary workers face severe restraints on pay.

(2)  Council also notes the review, currently being undertaken by the Department of Business, Innovation and Skills, into corporate governance and economic short-termism, including directors' remuneration; A Long-Term Focus for Corporate Britain, which is likely to recommend stronger links between company performance and executive pay.

(3)  Council welcomes the comments by TUC Secretary Brendan Barber, encouraging pension funds to exercise their rights as shareholders at company AGMs to vote against excessive chief executive, board level and banker pay and bonuses.

(4)  Council believes that the Merseyside Pension Fund should adopt and actively pursue a policy of restraint and social responsibility in relation to the pay and bonuses of senior executives of the companies that it invests in.

(5)  Council therefore instructs the Director of Finance, working with the Pensions Committee, to seek the agreement of the other Merseyside Councils to implementing this policy at the earliest opportunity, to further strengthen the Statement of Investment Principles as appropriate and to report annually on the actions taken in relation to this policy.