THE Stock Exchange is poised to back down from its opposition to one of the central recommendations in the Greenbury Committee report on top pay.
The victory for advocates of executive accountability will give shareholders the final say on incentive schemes that span more than 12 months, as originally proposed by Sir Richard's committee.
The Exchange had looked at extending the period to three years, sparking a storm of outrage led by Greenbury member Tim Melville-Ross, director- general of the Institute of Directors, who complained in December that it was backsliding.
But John Carney, a professional adviser to the committee and head of the remuneration practice at management consultancy Towers Perrin, said at the weekend: "There's little doubt in my mind that the Stock Exchange will revert to the Greenbury wording of 'more than one year'."
The climbdown is the first victory in the battle between leading members of the committee and its opponents. The latter are fighting a rearguard action by lobbying the Stock Exchange, which has responsibility for implementing the recommendations in its listing guidelines.
Mr Melville-Ross had warned that extending the exemption period would have encouraged companies to pitch incentive schemes between one and three years to avoid a vote by …