THE CONFEDERATION OF BRITISH INDUSTRY yesterday urged business leaders to move to rebuild the "batt...
THE CONFEDERATION OF BRITISH INDUSTRY yesterday urged business leaders to move to rebuild the "battered" reputation of the UK business with a package of measures to stem excessive payments for executive failure, writes the FT.
This follows a series of outcries during the past 18 months about high payments for executives abandoning underperforming companies.
According to Digby Jones, director-general of the CBI, the reputation of business had been suffering a blow over such "rewards for failure".
The CBI suggests that payments to departing directors should be made in phased monthly instalments, which should end once they have found new jobs.
The guidelines also recommend that severance payments should be based only on basic pay, earned bonus and pension accruals.
According to the CBI, the guidelines also aims for greater transparency on pay and severance entitlements, in the ope of avoiding government regulation.
OVER IN SCANDINAVIA, the Daily Telegraph reports that Sweden's markets were yesterday unmoved by the overwhelming rejection of the euro.
The Swedish OMX – that has, since March, risen in line with other world markets - stock traded sideways all Monday but ended up 0.96 points at 603.71.
While the Swedish krona fell distinctly yesterday morning against the euro to 9.20, it recovered to close at 9.15.
According to Jim O'Neill, a currency economist at Goldman Sachs, the Swedish currency should not sustain any weakness.
Meanwhile, Lars Heikenstan, governor of the Riksbank, reasserted that the central bank will continue targeting inflation at 2% and Swedish interest rates will stay at 2.75% for the moment.
LESS FORTUNATE THAN the Swedish market was struggling Scottish company PPL Therapeutics that yesterday was forced to put itself up for sale after shareholders rejected its scale-back business plan, reports the Scotsman.
However analysts doubt a buyer will be found for the entire company, which was once the former star of Scotland's biotechnology industry and became famous for taking part of the creation of Dolly the Sheep. They predict PPL will be either broken up or closed down and a small amount of cash divided between long-suffering shareholders.
PPL's chief executive Geoff Cook and four other directors left the board with immediate effect.
The company suffered its final blow after its strategy to develop Fibrin 1, a surgical sealant that speeds up blood clotting, was rejected. According to Cook, the company received the backing of a majority of institutional shareholders, but failed to win over the "balance sheet investors" - taken to be hedge fund Metage Capital, which has a 21% stake in PPL, and rogue shareholder Paul Scott.
This was one hit too many for PPL that earlier this summer suffered immensely after German pharmaceuticals giant Bayer pulled the plug on the joint development of recAAT, PPL's emphysema drug.
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