Directors' Remuneration
Background
All companies, except those that are small, are required to make certain disclosures about the aggregate remuneration of the directors. Quoted and unquoted traded companies are subject to considerably more onerous requirements involving preparation of a directors’ remuneration report including detailed information about each director’s remuneration.
A quoted company is defined in section 385 of the 2006 Act. It is a company whose equity share capital is included in the FCA's official list in the UK or another EEA state or is admitted to dealing on either the New York Stock Exchange or NASDAQ.
A traded company for the purposes of the scope of the directors’ remuneration report is defined in section 360C of the 2006 Act. It is a company any shares of which carry rights to vote at general meetings and are admitted to trading on a UK regulated market or an EU regulated market by or with the consent of the company.
AIM companies and companies which have only debt or non-equity share capital listed do not fall within the scope of the requirement to prepare a directors’ remuneration report.
GC 100 guidance
The GC100 and Investor Group publishes guidance to assist directors of listed companies to apply the directors’ remuneration reporting requirements.
