Ross Goobey, head of the ICGN committee looking at executive pay, said that a statutory body was not the answer, rather that shareholders should determine appropriate levels of remuneration.

BBC: Top funds question executive pay

For the avoidance of doubt, Mr Cable is still actively considering the idea that a simple majority of shareholders in favour of remuneration policy may not be appropriate.

BBC: What kind of democracy for votes on bosses' pay?

Penny Hughes, chair of RBS's remuneration committee, said the committee had "spent a great deal of time challenging and taking action in response to past events and considering how remuneration can help to drive appropriate behaviours at RBS in future".

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