Investors fight for powers to block 'rewards for failure' In a series of submissions to the Department for Business, members of the Association of British Insurers, which represents the main fund managers in the UK who account for billions of pounds of invested assets, have also demanded that the role of remuneration consultants be overhauled. Investor representatives spoken to by The Sunday Telegraph revealed the series of proposals 48 hours before the Business Secretary, Vince Cable, announces new legislation on pay. Mr Cable's department has been locked in negotiations with fund managers to ensure there is at least some agreement on measures before the announcements are made. Investors want to see total shareholder return or earnings per share used as a clear metric governing pay. It is also likely that a "one figure" approach to annual remuneration for each person named will be proposed to promote transparency. Uncapped bon-uses could also be the subject of new controls. Many investors have criticised the role of pay consultancies which are often blamed for making pay deals over-complicated. One proposal is that consultants should be paid a fixed fee rather than by the hour as they are presently. Investors are also demanding that chairmen of remuneration committees are able to explain the deals to investors without needing the consultants alongside. "If it's too complicated for the chairman to explain on his own, it's too complicated," said one leading figure involved in the negotiations. The ABI is the UK's most powerful investor representative body. Members include Legal & General Investment Management, the largest member with £320bn assets under management, Standard Life, Schroders, Scottish Widows and Fidelity. New powers to strengthen shareholder votes on pay are also being considered. Investors have asked for an automatic 60-day follow-up report on action taken if there is a substantial vote against a remuneration report from a company. If the action is insufficient, remuneration chairmen could then be removed) at a vote at the next annual general meeting.