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Latest News

Legislation plans for shareholders to vote on directors’ pay

by Personnel Today 23 Jan 2002
by Personnel Today 23 Jan 2002

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.

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

By Ben Willmott

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