Member

I turn now to Amendment 4 in the name of the noble Lord, Lord Remnant, which seeks to ensure that the rules about remuneration do not extend to individuals below board level. I support the noble Lord’s intention, and it is the Government’s expectation that the rules on performance-related pay target only the most senior executives in a company who have the greatest influence over the operation. This expectation is supported by Ofwat. In its consultation, Ofwat states that it intends to apply this rule only to executive directors who are members of the regulated company board and in receipt of performance-related pay. I reassure the noble Lord that Ofwat has no intention to extend the rules on remuneration and governance beyond board level at this time. The Government support this position.