Tuesday, 22 November 2011

UK: HIgh Pay Commission publishes final report

The High Pay Commission published its final report today: see here (pdf). Titled Cheques with Balances: why tackling high pay is in the national interest, the report makes various recommendations including the simplification of remuneration structures, greater disclosure and employee representation on remuneration committees. The Commission considered whether the current shareholder advisory vote regarding the remuneration report should be binding but decided instead to propose that shareholders' advisory votes should relate to remuneration arrangements for the three years following the vote. With regard to remuneration consultants, the Commission recommends that companies disclose the nature and extent of all services provided in order to address perceived conflicts of interest. It is also recommended that all non-executive positions should be publicly advertised.

NB: the Government's consultation on executive pay ends this week.

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