Directors’ Remuneration Reforms

Introduction

We previously reported that the Department for Business, Innovation and Skills ("BIS") is proposing a new legislative framework which is aimed at giving shareholders greater influence on the issue of executive remuneration. In March 2012 BIS published an initial consultation on the subject and in June 2012 they published another consultation proposing new standards and regulations for the reporting of executive remuneration.

In March of this year, following feedback from stakeholders, BIS published a schedule of frequently asked questions to help stakeholders understand how and when they will be affected by the reforms. This article will summarise and further examine these FAQs.