The TUC today welcomed news that shareholders are to get the right to vote on directors' salaries in pmoves aimed at curbing excessive "fat cat" pay awards.

Legislation tabled by Trade and Industry Secretary Patricia Hewitt will seek to improve the links between boardroom pay and performance.

A spokesman for the TUC said: "The test will be whether institutional investors, with their huge pension funds and block votes at annual meetings, respond in kind.

"Without their clout, smaller investors will not be able to hold executive excess to account."

The TUC published a report earlier this year showing the gap between pay rises for workers and directors was widening.

The new rules call on quoted companies to publish a report on directors' pay which will then be subject to a shareholder vote at an annual meeting.

Firms will be obliged to provide details in the report of all pay and compensation packages and name the remuneration committee.

A graph providing information on the company's performance in comparison with an appropriate share index will also be required.

The proposed amendments to the Companies Act 1985 could come into force before the end of the current parliamentary session.

Last week, Vodafone chief executive Sir Christopher Gent drew strong criticism after it emerged his pay package last year included a £2.4 million salary and a controversial £1.5 million bonus.

EMI's annual report confirmed music executive Ken Berry received £6 million in compensation after being replaced at the company's record-ed music division.