Executive Pay - Shareholder Voting Rights Consultation

In March 2012 the Department for Business, Innovation and Skill ("BIS") published a consultation paper on a proposed legislative framework which is aimed at giving shareholders greater influence on the issue of executive remuneration.

BIS proposes that these measures should apply to all UK incorporated "quoted companies" (defined under section 385 of the Companies Act 2006 to include companies listed on the Main Market but excludes those on AIM).

A summary of the key proposals is as follows:

1. An annual binding vote on future remuneration policy;
2. Increasing the level of support required on votes on future remuneration policy;
3. An annual advisory vote on how remuneration policy has been implemented in the previous year; and