Business secretary Vince Cable believes shareholders should have a bigger say on how much top executives at PLCs are paid.
Cable told the BBC ahead of his speech at the Liberal Democrat conference that there was a real problem with pay rising while share prices fall and giving shareholders may say would ensure there are “no rewards for failure”.
He told the BBC he did not want "state control of pay", but was "well-disposed" to shareholders having a veto.
"People accept capitalism but they want responsible capitalism,” he said.
Cable’s Department for Business, Innovation and Skills is due to publish a discussion paper on the proposals next month.