New rules on directors’ pay go before parliament

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

Following
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
performance.

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

The
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
Meeting

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By Ross Wigham