Legislation plans for shareholders to vote on directors’ pay

More
than a third of FTSE 100 companies plan to allow shareholders to vote on
directors pay this year.

In
a survey published by Company Secretarial Consultants, Edis-Bates Associates,
37 per cent of companies said boardroom pay would be put to the vote – up 13
per cent from last year.

The
increase comes as the government prepares to introduce legislation to make
voting on boardroom pay compulsory – yet still ‘advisory’.

The
Directors’ Remuneration Report Regulations 2002 were released for consultation
on 18 December, 2001, and will require companies to put an advisory resolution
to shareholders at each annual general meeting from 2003.

The
government also plans to require companies to include performance graphs in
their annual reports.

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

In
2002, only 11 per cent plan to include the graphs.

By Ben Willmott