Inside Out – Executive pay: new transparency
24 January 2019
New regulations came into force on 1 January 2019, requiring UK listed companies with over 250 employees to annually disclose the ratio of their CEO’s pay to the median, lower quartile and upper quartile pay of their UK employees.
The first such reports must be published in 2020, covering pay awarded in 2019.
All large companies will also be required to report on how their directors take employee and other stakeholder interests into account and to report on their corporate governance arrangements.
These reforms form part of the Government’s industrial strategy and are designed to address public concerns over the level of CEO salaries and also to give employees a greater influence over boardroom decisions.
The Government has published a set of FAQs on the new reporting requirements.
This article is from the winter 2019 edition of Inside Out, our newsletter for those with an interest in corporate and commercial services. To download the latest issue, please visit the newsletter section of our website. Law covered as at January 2019.
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The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at January 2019.