Directors’ pay under the spotlight if Labour re-elected

Companies will be forced to disclose detailed reports on
directors’ pay and performance in new legislation if Labour wins the general
election

The measures on directors’ remuneration were published
yesterday by trade and industry secretary Stephen Byers.

Under the plans, employers will have to publish a remuneration
report within their annual report. The report will outline details of former
directors’ compensation pay, directors’ performance-related pay and the
company’s remuneration policy.

It will include a performance share graph that will allow shareholders
to see how their company is performing.

“We support the government’s measures for further
information on directors’ remuneration. The inclusion of performance share
graphs will help shareholders link directors’ pay to the performance of the company,”
said Belinda Hudson, European Principal with HR consultancy William M Mercer.

If the legislation goes through, HR directors will have to
brief the remuneration committee on how to proceed with the proposals,
explained Hudson.

www.dti.gov.uk

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