New rules on directors’ pay go before parliament

regulations that would give shareholders a vote on directors’ remuneration have
been presented to parliament.

a period of consultation with business and employers, the new rules are
designed to give more transparency to directors pay with a clearer link to

and Industry secretary Patricia Hewitt said the changes would help prevent
lavish pay rises that were undeserved.

key changes proposed are

Quoted companies must publish a report on directors’ pay as part of their
annual reporting cycle, which must be approved by the board of directors

Copies of the report must be sent to the Registrar of Companies

Companies must hold a shareholder vote on the report at each Annual General

By Ross Wigham

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