Listed Company Directors’ Remuneration Reporting Changes

November 19, 2013

Listed Company Directors’ Remuneration Reporting Changes

The Large and Medium-sized Companies and Groups (Accounts and Reports) (Amendment) Regulations 2013 introduced new rules regarding the reporting of directors’ remuneration for directors of listed companies. The new rules apply from 30 September 2013.

The changes, which have been enacted by statutory instrument, follow draft regulations put forward in 2012 on the disclosure of directors’ remuneration.

For the first time, listed companies are required to make announcements on their websites regarding the severance arrangements with directors.

Of greatest interest to employees is the need for listed companies to explain how employee pay is determined vis a vis director pay and whether consultation with employees on director pay levels has taken place.

There are also a number of other changes aimed at making directors’ remuneration more transparent.