New reporting requirements have been set out in in the Companies (Directors’ Remuneration Policy and Directors’ Remuneration Report) Regulations 2019.
The new regulations build on existing measures by strengthening shareholder rights through the implementation of Articles 9a and 9b of European Council Directive 2017/828/EC, commonly known as the revised Shareholder Rights Directive.
The new reporting regulations were made on 22 May 2019 and apply to company reporting on financial years starting on or after 10 June 2019.
The new regulations look at remuneration policies and reports. Of particular interest is the need to compare the annual change of each director’s pay to the annual change in average employee pay, over a rolling five-year period.
Reports must now also show the split of fixed and variable pay for each director, as two additional columns to the existing ‘Single Figure’ table, and they must set out any changes made to share options granted or offered and the main conditions for the exercise of these rights including the exercise price and date, compared to the previous year.
The Department for Business, Energy and Industrial Strategy has released more information about how companies will be affected by new reporting requirements in the (Directors’ Remuneration Policy and Directors’ Remuneration Report) Regulations 2019.
