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25/01/2005
Disclosure rules on directors' pay 'working', claims Minister
Better disclosure on directors' pay is leading to "improved dialogue" between companies and shareholders according to research published today by the Department of Trade and Industry (DTI).
In a written statement to Parliament, Trade and Industry Secretary Patricia Hewitt said that rules on pay disclosure introduced by the Government (Directors' Remuneration Report Regulations 2002) had had a "positive impact" and that the report by Deloitte and Touche underlined the effectiveness of making directors' remuneration to closer scrutiny by shareholders.
As a result, the Trade and Industry Secretary said Government had decided against new provisions on directors' remuneration in the forthcoming Company Law Reform Bill.
The findings showed:
All of the top 350 FTSE companies put their remuneration report to a separate shareholder vote and company directors' awards are now more likely to be vested proportionally to set levels of performance with full vesting of awards only for more stretching performance targets.
Commenting of the survey findings, Patricia Hewitt said: "Today's report shows that the regulations we introduced in 2002 have delivered a substantial change in behaviour. We are now seeing higher levels of compliance by top British companies, improved disclosure of directors' pay and rewards and better engagement with shareholders.
"The UK now has a corporate governance framework for directors' pay that leads the world in terms of transparency and accountability. While we are not complacent, we believe that a combined approach that develops best practice, underpinned by legislation, is the best way to tackle this issue."
Ms Hewitt called on the Association of British Insurers and National Association of Pension Funds, and the Confederation of British Industry, to develop a common set of best practice guidelines on directors' contracts.
The Directors' Remuneration Report Regulations 2002 require quoted companies to publish a directors' remuneration report for each financial year.
(SP/MB)
In a written statement to Parliament, Trade and Industry Secretary Patricia Hewitt said that rules on pay disclosure introduced by the Government (Directors' Remuneration Report Regulations 2002) had had a "positive impact" and that the report by Deloitte and Touche underlined the effectiveness of making directors' remuneration to closer scrutiny by shareholders.
As a result, the Trade and Industry Secretary said Government had decided against new provisions on directors' remuneration in the forthcoming Company Law Reform Bill.
The findings showed:
- a significant increase in the levels of compliance with the Directors' Remuneration Report Regulations;
- growing investor satisfaction with improved disclosure on director's pay and awards;
- better communication and engagement between shareholders and companies: over 90% of shareholders say communications have improved;
- companies changing their remuneration policies and practices to reflect the link between pay and performance.
All of the top 350 FTSE companies put their remuneration report to a separate shareholder vote and company directors' awards are now more likely to be vested proportionally to set levels of performance with full vesting of awards only for more stretching performance targets.
Commenting of the survey findings, Patricia Hewitt said: "Today's report shows that the regulations we introduced in 2002 have delivered a substantial change in behaviour. We are now seeing higher levels of compliance by top British companies, improved disclosure of directors' pay and rewards and better engagement with shareholders.
"The UK now has a corporate governance framework for directors' pay that leads the world in terms of transparency and accountability. While we are not complacent, we believe that a combined approach that develops best practice, underpinned by legislation, is the best way to tackle this issue."
Ms Hewitt called on the Association of British Insurers and National Association of Pension Funds, and the Confederation of British Industry, to develop a common set of best practice guidelines on directors' contracts.
The Directors' Remuneration Report Regulations 2002 require quoted companies to publish a directors' remuneration report for each financial year.
(SP/MB)
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19 October 2001
Shareholders to get say on directors' pay
In a bid to strengthen the link between boardroom pay and a company’s performance, the UK government has unveiled proposals to give shareholders the right to block ‘fat-cat’ pay rises. Trade and Industry Secretary Patricia Hewitt announced on Friday that shareholders are to be given the right to an annual vote on directors' pay.
Shareholders to get say on directors' pay
In a bid to strengthen the link between boardroom pay and a company’s performance, the UK government has unveiled proposals to give shareholders the right to block ‘fat-cat’ pay rises. Trade and Industry Secretary Patricia Hewitt announced on Friday that shareholders are to be given the right to an annual vote on directors' pay.
25 July 2006
Women in more profitable UK boardrooms
Women are continuing to break through the 'glass ceiling' of British business, according to the latest survey of UK directors. The survey by business analysts Experian found that female directors are also more likely to be involved in profitable businesses – 57.6% of all female directors are involved in companies that make a profit, compared to 56.
Women in more profitable UK boardrooms
Women are continuing to break through the 'glass ceiling' of British business, according to the latest survey of UK directors. The survey by business analysts Experian found that female directors are also more likely to be involved in profitable businesses – 57.6% of all female directors are involved in companies that make a profit, compared to 56.
11 November 2003
Record number of women on FTSE boards
The number of female directorships in the FTSE 100 has topped 100 for the first time, according to new research.
Record number of women on FTSE boards
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04 November 2005
Bosses pay rises up to six times faster than employees
A survey of top company bosses pay has revealed that salaries have increased by 18% in the last year. The survey of 1,000 top directors conducted by Income Data Services showed that around half had incomes in excess of £1 million and a few received remuneration packages put at £5 million a year.
Bosses pay rises up to six times faster than employees
A survey of top company bosses pay has revealed that salaries have increased by 18% in the last year. The survey of 1,000 top directors conducted by Income Data Services showed that around half had incomes in excess of £1 million and a few received remuneration packages put at £5 million a year.
26 June 2002
New regulations to crack down on "fat cat" pay
New regulations have been announced by Trade Secretary Patricia Hewitt designed to crack down on "fat cat" pay deals in the private sector. Under the plans shareholders will have the right to vote annually on the level of directors' salaries, and companies will have to publish details of how salaries relate to performance.
New regulations to crack down on "fat cat" pay
New regulations have been announced by Trade Secretary Patricia Hewitt designed to crack down on "fat cat" pay deals in the private sector. Under the plans shareholders will have the right to vote annually on the level of directors' salaries, and companies will have to publish details of how salaries relate to performance.
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