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

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

Email(Required)

OptOut

From time to time, we will send you emails about selected products, events and services from Personnel Today and OHW+ - but you can choose to opt-out at any time. If you do not wish to receive these emails, please tick this box.

Comments

This field is for validation purposes and should be left unchanged.

Δ

By Karen
Higginbottom. Click here to respond