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

www.dti.gov.uk

By Ross Wigham

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