The new remuneration report: Disclosure regulations

Published on: 30 Jun, 2013

This publication from Deloitte (UK) provides provides greater detail to that contained within the 'Need to Know' and 'Governance in brief' publications on the new directors' remuneration report regulations issued by the United Kingdom Department for Business, Innovation and Skills (BIS) which will come into force for periods ending on or after 30 September 2013.  Under the regulations and related changes to the Companies Act 2006:

  • the remuneration report will be split into a policy report (not subject to audit) and an annual report on remuneration (some elements of which are subject to audit);
  • the policy report will be subject to a binding shareholder vote which must take place in the first financial year beginning on or after 1 October 2013;
  • the annual report on remuneration must provide details on remuneration in the period and some information for the following year and will be subject to an annual advisory shareholder vote; and
  • the contents of the annual report on remuneration are substantially different from existing requirements and include the ‘single figure’ for each director and a number of new requirements.

The new style of report will also contain the details of the policy to be put forward for approval at the first AGM held after that date.

The guidance is targeted at remuneration committee members to help them prepare for the remuneration report and the binding vote.


Correction list for hyphenation

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