With effect from 1st October 2013 in addition to seeing an increase in the prescribed minimum wage rates (see previous blog), we also see the introduction of the provisions of the Enterprise & Regulatory Reform Act 2013 requiring, amongst other things, disclosure and approval of remuneration rates for directors of quoted companies. I suspect that it is fair to say that these levels of remuneration will be some way above the National Minimum Wage levels!
Since
2002 quoted companies have been required to provide a report detailing
directors’ remuneration for each financial year; however, from 1st
October 2013 the details required in the annual report on remuneration are
being extended and the policy is subject to a binding shareholder approval
which must be confirmed by ordinary resolution carried at least once every
three years.
Shareholder approval will
also be required to any change of the policy within the three year period. Call me a sceptic but it will be interesting
to see what, if any, effect this has on director remuneration.
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