Remuneration archive

What’s really happening to executive pay?

  • PwC research shows FTSE 100 executive pay rises are modest, but remuneration committees should continue exercising caution.
[27-03-2015]

Remuneration reporting: year two

  • As companies prepare their second remuneration reports under the new regime, quality could be improved by more tailored content and clearer information about performance targets.
[27-03-2015]

Rewarding employees: time for a radical rethink

  • Companies need to understand employee preferences in order to maximise the impact of their reward packages.
[26-03-2015]

Remuneration policies: how big are your changes?

  • Companies need to think carefully about whether to seek shareholder approval for remuneration policy changes, including those made to comply with the revised UK Corporate Governance Code.
[09-01-2015]

Calculating holiday pay: what now?

  • Results of AGMs for companies with December year ends are now filtering through. 29 companies with less than 85% support for the remuneration report
  • As yet only one company has an overall negative vote on the remuneration resolutions
[23-06-2014]

Update on the new remuneration reporting regime

  • The first binding votes have been cast at January and February AGMs on the Directors' Remuneration Policy
  • For the 20 companies with September year ends, the level of support has been consistently high
  • Companies with December and March year ends will face the challenge of meeting investor requirements while retaining flexibility
[20-03-2014]

Pay: what goes up must come down

  • Are the forces shaping executive pay here to stay? More regulation is tending to dampen pay; and simpler pay packages are reducing pay too
  • UK executive pay has doubled since the millennium
  • But in the last two years, bonuses to FTSE100 chief executives have fallen and salary freezes have become commonplace
[20-03-2014]

Update on the new remuneration reporting regime

  • Challenge to balance specificity that shareholders want and flexibility that companies may need
  • BIS has requested FRC consult on whether certain changes should go into the governance code
[15-01-2014]

Outcome of 2013 AGM season – votes on remuneration reports

  • No company in FTSE 100 suffered an overall vote against its remuneration report but not ‘back to normal’
  • Shareholders more critical about remuneration report vote
[13-09-2013]

Legislation for new-style remuneration reporting is final

  • Legislation is final on the new-style remuneration report
  • UK companies listed in the UK, New York or in the EEA must prepare remuneration reports compliant with the new regulations for years ending on or after 30 September 2013
[11-09-2013]

Audit implications of new BIS regulations

  • More extensive audit requirements , including disclosures on how performance measures have been met with pay, and directors’ shareholding and share interests
  • Auditors to consider whether pay disclosures are: ‘fair, balanced and understandable’
[26-06-2013]

CRD IV – implications outside the financial sector?

  • CRD IV likely to extend bonuses cap beyond financial sector
  • UK investors want simpler pay systems
[26-06-2013]

Salaries and bonuses – approach this year?

  • FTSE remuneration committees heeding shareholder calls on pay and performance – 35% (of those surveyed) have frozen CEO base pay
[26-06-2013]

Interactions between board committees

  • Increased push for board committees (audit, remuneration, risk) to interact
[26-06-2013]

Survey of non-executive directors’ fees

  • NEDs’ fees rising slower in the FTSE 100 than in the FTSE 250
  • Fees for committee membership also plateauing
[19-03-2013]

Deferral of bonuses and other income

  • Around 30% of the FTSE 100 is considering some form of bonus deferral to take advantage of the drop in the top rate of income tax
  • Bonus deferral is likely to receive press attention
[19-03-2013]

BIS legislation due in May

  • Legislation likely be final in May 2013, affecting first those with financial years ending on 30th September
  • The annual binding vote on policy may be included at report stage
  • FRC advises BIS to hold back on legislation and ask investor bodies to issue guidance instead
[19-03-2013]

BIS legislation expected in March

  • Implementation of remuneration law on disclosure due Oct 2013
  • FRC Lab is looking at disclosure scenarios and CEO pay
  • Investors have provided guidance on what’s useful for them
[24-01-2013]

Disagreements delay CRD 4 vote in Europe

  • Parliament has postponed vote until March
  • Disagreements eg, on remuneration (bonuses cap); employee representation on remuneration committee
[09-01-2013]