1 October marks the beginning of the new reporting and voting regime on directors’ remuneration for UK quoted companies (although AIM is excluded). The first companies to be affected will be those with September year ends because their new reporting year begins on 1 October 2013. These companies will need to produce Directors’ Remuneration Reports in their 2013 Annual Reports that comply with the new regulations and put forward-looking remuneration policy to a binding vote at their AGM while the backward-looking report of the implementation of their previous policy will only be subject to a non-binding shareholder vote. Under the transition provisions of the binding vote on pay policy, it will be particularly important for the first vote under the new regulation to be carried.
There are relatively few FTSE companies with a September year end and the approach that they take to their next Directors’ Remuneration Reports will be keenly watched by the large numbers of FTSE companies with December year ends, who will be next line to comply with the new regime.
View our UK Executive Remuneration Tracker for information about these developments.