Vince Cable (pic: PA)

Vince Cable (pic: PA)

Vince Cable sparked fury yesterday by diluting checks on fatcat pay and dodging blame for Royal Bank of Scotland chief Stephen Hester’s bonus.

He told the Commons he would not give staff a say on bosses’ wages and the Business Secretary claimed Mr Hester’s £1million bonus was “above my pay grade”.

But the Lib Dem did promise Stock Exchange-listed companies powers to claw back cash from blundering board members and shareholders a binding vote on boardroom pay and perks.

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Admitting fatcats would not fear his plans, he said: “I don’t expect them to be terrified but I expect them to think more carefully.”

The Institute of Directors welcomed the plans. Roger Barker said: “The Government… is right in rejecting mandatory inclusion of employees on remuneration committees.

But both Labour and the Tories were critical.

Tory right-winger Philip Davies accused Mr Cable of spouting “drivel”, adding: “Business looks to his department for support. Can I suggest he gets off their backs and lets them create wealth?”

While Shadow Business Secretary Chuka Umunna said: “His proposals do not go far enough in promoting transparency, accountability and fairness.”