Friday, 14 October 2011

UK: the Company Remuneration Bill

The Company Remuneration Bill was introduced in the House of Lords last month by Lord Gavron. The Bill requires, amongst other things, that shareholders ratify certain decisions of the remuneration committee, by way of an ordinary resolution at an annual general meeting, prior to the implementation of those decisions. It also requires the annual report to state the ratio between the highest remuneration director or employee and the average remuneration of the lowest remunerated 10% of employees.

A copy of the Bill is available here (pdf) and its progress can be followed here. Without Government support the Bill stands little chance of becoming law. Moreover, the issue with which it deals is currently the subject of a Government consultation launched last month. This is not the first time that Lord Gavron has attempted to change the law in this area. In the 2008-9 session of Parliament, he introduced the Companies’ Remuneration Reports Bill (it failed to become law).

No comments: