Institute of Directors on High Pay Commission report

The chief economist at the Institute of Directors said he would not defend the "indefensible" after a report into the pay of elite managers in UK firms, which he claimed could undermine confidence in the private sector.

Graham Leach spoke as a report said excessive pay at the top of UK companies was having a "corrosive" effect on the economy and Business Secretary Vince Cable said some pay awards have been unacceptable.

It was published by the High Pay Commission, set up by the left-leaning pressure group Compass with support from the Joseph Rowntree Charitable Trust.

Former Labour MP Alan Miburn said shareholders want to see a link between performance and pay.

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