Byers holds court in the fat cats' den

THE Government again attacked the high level of executive payincreases in that citadel of fat cattery, the annual CBI conference.

Trade and Industry Secretary Stephen Byers warned assembledexecutives that they should not get more pay than they deserved.

"The principle that people should not be paid what they have notearned applies equally to the boardroom as it does to the shopfloor," he said.

He pointed out that pay increases for directors were running wellahead of inflation and levels of company performance. But while heconsidered it was not for Government to determine levels ofremuneration for directors, he did believe that shareholders shouldhave greater opportunities to address the issue.

The Government's consultation on directors' remuneration closedlast week, so action looks likely to follow in the fairly nearfuture.

CBI president Sir Clive Thompson stressed earlier that he had nottaken a voluntary pay cut but that his pay would fall by a thirdthis year because the performance of his company, Rentokil Initial,of which he is chief executive, had fallen below target.

CBI members also showed some irritation with what they see as theGovernment's apparent obsession with the Internet and e-commerce,grumbling that some firms actually have to make things. Byers saidit was essential for businesses, large and small, to respond to thee-commerce challenge and it will also be a theme of Prime MinisterTony Blair's speech to the conference this morning.

The Minister also reported on the findings of the Government'staskforce looking at how to meet the UK's information skills needs.

Its recommendations include setting up a skills council; asustained campaign to raise awareness of careers in this sector; abetter dialogue between business and education to address skillsneeds, and new ways to define and measure those needs.