This GC100 and Investor Group statement, published 18 December 2014, relates to directors' remuneration reporting guidance. The statement provides clarification on certain aspects, and general further guidance. Among other things, the statement aims to promote best practice, and addresses the following:
- Outlining an approach that emphasises a link between remuneration and the strategy of the company;
- Future remuneration reports should mention any assurances the company has given relating to remuneration, for as long as those policies remain active. They should also be published in the annual report section of the company website;
- Remuneration reports need not include full copies of the company policy – the statement outlines that as long as enough information is included to allow shareholders to easily assess the report, this is sufficient;
- Retrospective disclosure of targets and performance criteria are required, however the potential difficulties of prospective disclosure are recognised;
- Maximum levels of remuneration and maximum levels of bonuses should be disclosed for each director (in accordance with the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008);
- The remuneration report should disclose details of how the remuneration committee ensures compliance with guidelines; and
- Clarity and conciseness is emphasised when drawing up remuneration reports.
The statement is available at:
http://uk.practicallaw.com/0-592-8546.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.