New directors’ remuneration report regulations laid before UK Parliament
26 Jun 2013
New directors’ remuneration report regulations issued by the United Kingdom Department for Business, Innovation and Skills (BIS) have now been finalised and laid before the UK Parliament for approval. The regulations, which apply for quoted companies, completely change the requirements for the contents of the directors’ remuneration report and include some significant new disclosures, particularly a ‘single figure’ for the remuneration of each director. They come into effect for periods ending on or after 30 September 2013.
Under the regulations (link to draft 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.
Click for:
BIS press release (link to BIS website)
Regulations laid before parliament (link to draft regulations)
Deloitte ‘Need to Know’ on the new directors’ remuneration report regulations
