Firms are to be forced to explain why they have paid huge sums to top executives in a bid to "call time on payouts for failure", Vince Cable is due to say.
The Business Secretary believes a four-fold increase in FTSE100 chief executive pay since 1998 proves the system of remuneration has become "dysfunctional".
He will use his keynote speech to the Liberal Democrat conference to unveil plans to require companies to set out the criteria used to determine pay and perks.
And he will float a series of other proposals aimed at reining in multi-million pound packages, including putting employee representatives on remuneration committees.
In his speech to the Liberal Democrat conference in Birmingham, he will hit out at "appalling inequalities of income and wealth".
There was "nothing wrong with generous rewards" for successful businessmen, he said, but added: People accept capitalism but they want responsible capitalism. I want to call time on payouts for failure".
Changes to the reporting requirements for all stock exchange-quoted companies are due to come into force in October 2012, following a three-month consultation. At present the details of each executive board member's salary, pension, bonuses, and shareholdings are recorded but in separate parts of the annual report.
Under the new system they will be brought together in one table - with a total figure given to shareholders for the first time.
An explanation of how he package was arrived at will also have to be included as well as projections of the minimum and maximum each executive could expect the next year.
Mr Cable's Department for Business, Innovation and Skills will also publish a discussion paper on further moves to curb excessive pay. One idea up for debate is giving shareholders a binding vote on pay.