July 2, 2013
New U.K. Pay Rules
– Subodh Mishra, ISS Governance Exchange
Last week, the U.K.’s Department of Business, Innovation, and Skills released final regulations governing directors’ pay. The main changes to the pay reporting regulations include: a pay policy, which will be subject to the new legally binding vote; an illustration of the level of awards that could pay out for various levels of performance meaning pay information is presented in a more understandable format; all elements of director’s pay will be reported in a single, cumulative figure (the regulations define how this should be calculated so that all companies are consistent in their approach); and improved disclosure on the performance conditions used to assess variable pay of directors.