July 19, 2016
Binding Say-on-Pay: Finally Coming to the UK?
– Broc Romanek, CompensationStandards.com
You might recall that the concept of non-binding say-on-pay came from across the pond. The British had implemented say-on-pay a decade before the US. More recently, the UK has been close to adopting binding say-on-pay (see this blog) – and even the European Commission proposed it a few years back.
In the wake of Brexit, it looks like the new UK Prime Minister Theresa May is seeking a number of governance reforms – as noted in this excerpt from the Glass Lewis blog:
On July 11 Theresa May launched her subsequently successful campaign to become leader of the Conservative Party and, by extension, Prime Minister of the UK, under the slogan “A country that works for everyone, not just the privileged few”. Having outlined her broader vision for the economy, Ms. May’s speech quickly turned to matters of corporate governance under the themes of “Putting people back in control” and “Getting tough on corporate irresponsibility”.
In detailing her priorities, Ms. May vowed to push for employee representatives on boards and to make shareholder votes on executive remuneration legally binding, moves which are likely intended to address growing inequality and perceived public distrust in the establishment, business and politicians.