Former Gec Head Attacks Corporate Governance Norms

He accused some institutions of using guidelines from the Cadbury and Greenbury committees on corporate governance virtually as a means to persecute executive directors.

And while condemning corporate greed, he said it was crucial, if companies were to function well, to maintain trust between non-executive and executive directors on company boards.

I don't like the implications now coming from Cadbury that non-executives should be set against executives and monitor them, he told more than 400 shareholders at the company's annual meeting in London.

Lord Weinstock, 72, spoke out after public controversy over the incentive package drawn up for his successor as GEC's managing director, George Simpson. The performance criteria for Simpson's pay package, worth up to 1.5 million a year, were toughened after discussions with the Association of British Insurers.

 

Simpson's appointment to the GEC board was carried easily on a show of hands. Afterwards he said: I'm not sure if anyone is worth this kind of package.

But GEC was competing for his services in a market where such rates prevailed.

Simpson said he was looking forward to trying to step into the great man's shoes, when he starts at GEC's Stanhope Gate headquarters on Monday.

Shareholders gave a standing ovation to Lord Weinstock, who has run GEC for 33 years, building it from annual pre-tax profits of