Wednesday, 27 June 2012

UK: the remuneration report - consultation on Government's reform proposals

The Department for Business, Innovation and Skills has published for comment a draft of the Regulations through which changes in the structure and content of remuneration reports will be introduced: see here (pdf). Under the Regulations, remuneration reports will contain two distinct parts: [1] a policy report setting out all elements of a company’s remuneration policy and key factors that were taken into account in setting the policy (this part will only be required when there is a shareholder vote on the policy) and [2] a report on how the policy was implemented in the past financial year, setting out actual payments to directors and details on the link between company performance and pay. The purpose of the consultation is to seek evidence on the costs and benefits of the proposals as well as comments on the drafting of the Regulations.

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