The Government has been urged to tackle boardroom pay after union leaders warned the problem of executive pay was "out of control".
Speaking to the Trade and Industry Select Committee, David Coats, the head of economic and social affairs at the TUC, said the CBI was not capable of keeping a lid on excessive payments.
He said: "Now is the time for a clear marker to be put down. I am confident that would have an effect on business behaviour.
"Business has been saying that for 15 years but nothing has changed. We are looking for the law to send a clear signal that the culture in British boardrooms should change. There should be a straightforward notice period of three months maximum, which is what workers get."
However the CBI said details of a director's pay are not revealed until the firm's reported accounts are published - which could be 18 months later.
